Silver Price Technical Analysis: July 12, 2024
Silver Price Technical Analysis: July 12, 2024
Key Points and Takeaways:
- Monthly chart: Silver price confirmed bullish breakout intact, long-term outlook bullish.
- Weekly chart: On track for another strong weekly close, bullish momentum continues.
- Daily chart: Price holds above new support level at $34.50, potential retest of resistance.
- 4-Hour chart: RSI remains above 50, short-term buying pressure persists.
Silver Stackers,
Welcome to today’s silver price technical analysis, examining the silver market on July 12th, 2024. The silver market continues its upward trajectory, holding onto the gains from the breakout above $35.00 earlier in the week. The bulls are in firm control, and sentiment remains positive. We’ll analyze various timeframes to understand how this recent price action impacts 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 Valid
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. This is a significant development and suggests a potential long-term uptrend for silver.
Weekly Chart: Bullish Momentum Gains Strength
The weekly chart presents a strongly bullish picture. The bulls are on track for another strong weekly close above $33.00. This further strengthens the bullish momentum on the weekly timeframe. A confirmed weekly close above $35.00 would be a very bullish sign.
Daily Chart: Bulls Defend New Support
The daily chart presents a bullish picture. The price has held above the new support level around $34.50. This is a positive sign that suggests the bulls are defending this new support zone. A confirmed break above $36.00 would be a very bullish sign, and the bulls could potentially retest the resistance level at $37.00-$38.00. Conversely, a sustained move below $34.00 could indicate a short-term pullback.
4-Hour Chart: Short-Term Buying Pressure Persists
The 4-hour chart offers a bullish picture. The RSI remains above 50, indicating that short-term buying pressure persists. This is a positive sign for the bulls and suggests that they are still in control in the near term. A sustained move above 60 on the RSI could indicate overbought conditions, but this wouldn’t necessarily be a bearish signal in the current bullish trend.
Looking Beyond the Charts: Potential Catalysts
While technical analysis provides valuable insights, a holistic approach is crucial, especially during a bull run:
- Geopolitical Tensions: Keep an eye on ongoing geopolitical tensions around the world. These can sometimes lead to increased demand for safe-haven assets like silver.
- Retail Investor Interest: Monitor retail investor interest in the silver market. A surge in retail investor buying can add further fuel to the current rally.
Stay Informed, Manage Risk, 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 potential for another strong weekly close above $33.00 strengthening bullish momentum on the weekly chart, the price holding above the new support level at $34.50 with a potential retest of resistance on the daily chart, and the persistence of short-term buying pressure on the 4-hour chart are all developments to watch closely.
The recent market action highlights the importance of risk management, even in a bull market. While the short-term outlook for silver appears bullish, there could still be periods of volatility. Make sure to use stop-loss orders to protect your capital and avoid making emotional decisions based on short-term movements. If you’re a long-term stacker, this continued upward trend is a positive development, and you can focus on accumulating silver according to your stacking plan. Remember, the silver market is inherently volatile, and conducting your own research and due diligence is paramount.
