Silver Price Technical Analysis: March 21, 2024
Silver Price Technical Analysis: March 21, 2024
Key Points and Takeaways:
- Monthly chart: Silver price remains neutral within a horizontal channel.
- Weekly chart: The verdict on the upward trend is still out. A weekly close above $26.50 is needed for confirmation.
- Daily chart: The price action suggests a possible bearish reversal. A break below $25.50 confirms the reversal.
- 4-hour chart: The RSI is falling, indicating growing bearish pressure.
Silver Stackers,
Welcome to today’s technical analysis, examining the silver market on March 21st, 2024. We’ll utilize various timeframes to understand how silver behaved after the recent upward movement and in light of gold reaching all-time highs. Remember, technical analysis is just one tool, and should not be used as sole investment advice.
Monthly Chart: Stuck in Neutral Territory
The monthly chart continues to showcase neutrality, with silver confined within the horizontal channel established since November 2023. This ongoing consolidation phase suggests a lack of clear direction in the long term. A breakout above or below this channel on the monthly timeframe would signal a more definitive trend shift.
Weekly Chart: Uptrend Needs Confirmation
The weekly chart presents a potential uptrend that’s still in question. The price has tested the resistance zone around $26.50 several times this week. However, unlike last week, the price was unable to close above this level. A single weekly close above resistance isn’t enough for confirmation. This week’s price action suggests a possible rejection from the resistance zone. Bulls would ideally need to see the price recapture and hold above $26.50 next week for the uptrend to remain valid.
Daily Chart: Bearish Reversal Takes Shape?
The daily chart presents a potentially bearish scenario. The recent price surge has not only breached the $23.10 support, but has also seen the price consolidate above the previous resistance zone, now turned support, around $24.60. The current price action on the daily timeframe suggests a possible bearish reversal. The doji candlestick from Wednesday followed by a downward close today indicates selling pressure. A clean break below the $25.50 support level would confirm this reversal.
4-Hour Chart: RSI Hints at Bearish Pressure
The 4-hour chart offers a bearish perspective. The RSI is falling, currently hovering near 45. This indicates that the price is approaching oversold territory and suggests growing bearish pressure. A continued decline in the RSI alongside a price breakdown below $25.50 could signal further downside potential for silver.
Looking Beyond the Charts: A Multifaceted Market
While technical analysis provides valuable insights, a holistic approach is crucial:
- Geopolitical Events: Ongoing events, like the Russia-Ukraine War, can continue to influence investor sentiment and impact precious metal prices.
- Central Bank Policy: No major central bank meetings are scheduled for this week, but upcoming policy decisions can significantly impact the dollar and indirectly influence silver prices.
- Gold Price Movement: Gold prices continue to trade near all-time highs, potentially influencing silver due to their correlation as safe-haven assets.
- Upcoming Economic Data: There are no major economic data releases scheduled for today or the immediate future.
Stay Informed, Stay Vigilant, and Happy Stacking!
By understanding technical analysis, fundamental factors, and market sentiment, you can equip yourself with knowledge to navigate the ever-changing silver market. Remember, conducting your own research and due diligence is paramount before making any investment decisions.
Disclaimer: This report is for informational purposes only and should not be considered financial advice. Please consult with a financial professional before making any investment decisions.
