Silver Price Technical Analysis: July 18, 2024
Silver Price Technical Analysis: July 18, 2024
Key Points and Takeaways:
- Monthly chart: Silver price confirmed bullish breakout intact, long-term outlook bullish.
- Weekly chart: Weekly close above $35.00 holds, bullish momentum regains some footing.
- Daily chart: Price consolidates near $35.00, potential breakout or breakdown.
- 4-Hour chart: RSI rebounds above 50, short-term buying pressure shows signs of life.
Silver Stackers,
Welcome to today’s silver price technical analysis, examining the silver market on July 18th, 2024. After a volatile week that saw the bulls face resistance and then attempt a comeback, the silver market enters a consolidation phase. The bulls managed to defend the key support level of $35.00 on the weekly chart, offering some hope for a continuation of the uptrend. 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 Needs Rebuilding
The weekly chart presents a cautiously bullish picture. The bulls managed to achieve a weekly close above $35.00. This is a positive sign and helps maintain the bullish momentum on the weekly timeframe. However, the bulls need to build on this momentum in the coming weeks to solidify the uptrend.
Daily Chart: Bulls and Bears in a Tug-of-War
The daily chart presents a neutral picture. The price has consolidated near the key support level of $35.00. This consolidation could be a precursor to a breakout in either direction. A confirmed break above $36.00 would be a bullish sign and could lead to a retest of the resistance zone at $37.00-$38.00. Conversely, a sustained move below $34.50 could indicate a deeper pullback on the daily timeframe.
4-Hour Chart: Short-Term Buying Pressure Re-emerges
The 4-hour chart offers a cautiously bullish picture. The RSI has rebounded above 50, indicating that short-term buying pressure is starting to show signs of life after being subdued for the past couple of days. A sustained move above 60 on the RSI would be a very bullish sign for the near term.
Looking Beyond the Charts: Earnings Season Begins
While technical analysis provides valuable insights, a holistic approach is crucial, especially after a volatile week:
- Corporate Earnings Season: The start of corporate earnings season could impact the market. Strong earnings reports could boost investor confidence and potentially lead to a weaker US dollar, which could benefit silver prices.
- Federal Reserve Meeting Minutes: The release of the minutes from the latest Federal Reserve meeting could provide clues about the central bank’s future monetary policy decisions, which can impact the US dollar and silver prices.
Stay Informed, Be 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 weekly close above $35.00 offering some hope for the bulls, the price consolidating near $35.00 with a potential breakout or breakdown on the daily chart, and the re-emergence of short-term buying pressure on the 4-hour chart are all developments to watch closely.
The recent market action underscores the importance of patience in the silver market. The bulls and bears are currently in a tug-of-war, and the short-term direction remains uncertain. Don’t get discouraged by short-term volatility if you’re a long-term investor. If you’re a stacker, focus on your stacking goals and view any pullbacks as potential buying opportunities depending on your risk tolerance and overall plan. Remember, the silver market is inherently volatile, and conducting your own research and due diligence is paramount.
