Silver Price Technical Analysis: June 13, 2024
Silver Price Technical Analysis: June 13, 2024
Key Points and Takeaways:
- Monthly chart: Silver price confirmed bullish breakout remains intact.
- Weekly chart: Bulls attempt to reclaim $32.00 after FOMC announcement.
- Daily chart: Price action hinges on FOMC outcome and market reaction.
- 4-Hour chart: RSI remains near 50, reflecting short-term neutrality.
Silver Stackers,
Welcome to today’s silver price technical analysis, diving into the silver market on June 13th, 2024. The silver market is reacting to the outcome of the highly anticipated Federal Open Market Committee (FOMC) meeting held yesterday. The bulls and bears are closely watching how the market interprets the Fed’s decisions on interest rates and monetary policy, which can have a significant impact on the US dollar and indirectly influence silver prices. We’ll analyze various timeframes to understand how this recent price action and the FOMC announcement impact the short-term and long-term outlook. Remember, technical analysis is just one tool, and should not be used as sole investment advice.
Monthly Chart: Uptrend Still in Control
The monthly chart continues to offer a bullish perspective for long-term investors. The confirmed bullish breakout above the horizontal channel established since November 2023 remains in play. The strong May close above $30.00 provides a stronger confirmation of the long-term uptrend for silver.
Weekly Chart: Bulls Eyeing $32.00 Again
The weekly chart presents a cautiously optimistic view for the bulls. Following the FOMC meeting, they are attempting to reclaim the resistance level of $32.00. The market’s reaction to the FOMC announcement will significantly influence whether the bulls can successfully break above this key level. A decisive break and close above $32.00 on the weekly timeframe would be a very bullish sign. Conversely, a sustained move below $30.00 could indicate a deeper pullback on the weekly timeframe.
Daily Chart: Price Action Hinges on Market Response
The daily chart presents an uncertain picture. The price action today will be largely dependent on the market’s overall reaction to the FOMC announcement. If the market perceives the Fed’s decisions as positive for the US dollar, silver prices could face downward pressure. Conversely, if the market reacts positively to the FOMC announcement, the bulls could gain momentum and potentially break above $32.00.
4-Hour Chart: RSI Reflects Short-Term Neutrality
The 4-hour chart offers a neutral perspective. The RSI is currently hovering near 50, indicating that the momentum is neither strongly bullish nor bearish in the short term. A sustained move above 50 on the RSI, coupled with a confirmed break above $32.00 on the daily timeframe, would be a very bullish sign. Conversely, a sustained move below 50 on the RSI could indicate further consolidation or a move back towards $31.00.
Looking Beyond the Charts: Market Reaction is Key
While technical analysis provides valuable insights, a holistic approach is crucial, especially after a significant event like the FOMC meeting:
- Market News and Analysis: Closely monitor market news and analysis following the FOMC meeting to understand how the market is interpreting the Fed’s decisions and how it might impact the US dollar and silver prices.
- Geopolitical Tensions: Ongoing geopolitical tensions continue to be monitored for any major developments that could impact investor sentiment and precious metal prices.
Stay Informed, Stay Patient, and Happy Stacking!
By understanding technical analysis, fundamental factors, and market sentiment, you can position yourself to potentially benefit from the silver market’s opportunities. The confirmed bullish breakout on the monthly timeframe, the bulls’ attempt to reclaim $32.00 on the weekly chart, the uncertain price action on the daily chart hinging on the FOMC outcome, and the short-term neutrality on the 4-hour chart are all developments to watch closely. The market’s reaction to the FOMC meeting will be a significant driver for the price in the near future. Patience is key during these periods of uncertainty. If you’re a long-term stacker, focus on your stacking goals and maintain a long-term perspective. Remember, the silver market is inherently volatile, and conducting your own research and due diligence is paramount.
