Silver Price Technical Analysis: April 12, 2024
Silver Price Technical Analysis: April 12, 2024
Key Points and Takeaways:
- Monthly chart: Still in a holding pattern within the horizontal channel. Needs a breakout for a clearer long-term direction.
- Weekly chart: A bullish close above $26.50 this week strengthens the uptrend. Confirmation needed for a sustained move higher.
- Daily chart: The bullish engulfing pattern is confirmed with a close above $27.00. Bulls now target the resistance zone around $28.25.
- 4-hour chart: The RSI is rising, indicating increasing bullish momentum.
Precious Metal Investors and Silver Stackers,
Welcome to today’s technical analysis, examining the silver market on April 12th, 2024. This week has been a positive one for silver, with the bulls regaining control after the earlier correction. We’ll delve into various timeframes to understand how this price movement impacts the short-term and long-term outlook, especially considering gold prices continuing near 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 (But for How Long?)
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. However, unlike the previous weeks, the recent price action hints at a potential breakout. If the bulls can maintain the momentum and push the price above the upper channel line in the coming weeks, it could be a significant long-term bullish signal.
Weekly Chart: A Bullish Confirmation
The weekly chart presents a stronger bullish signal compared to last week. The price successfully closed above $26.50 for the second consecutive week, and this time, it also managed to close above $27.00. This confirms the bullish engulfing pattern that emerged on the daily chart and strengthens the overall uptrend on the weekly timeframe. However, further confirmation is still needed. If the bulls can maintain the price above $27.00 on the weekly timeframe for another week, it would be a strong indication that the uptrend is likely to continue.
Daily Chart: Bullish Engulfing Pattern Confirmed
The daily chart presents a successful confirmation of the bullish engulfing pattern. The bulls were able to push the price higher and achieve a close above $27.00. This confirms the reversal pattern and suggests a potential resumption of the uptrend. The bulls now face the resistance zone around $28.25. A clean break and hold above this level would be a significant bullish development and could open the door for further gains.
4-Hour Chart: RSI Hints at Growing Bullish Momentum
The 4-hour chart offers a bullish perspective. The RSI, which had been falling earlier in the week, is now rising and currently hovers near 60. This indicates that the price is neither oversold nor overbought, but it also suggests increasing bullish momentum compared to the recent downtrend. A continued rise in the RSI alongside a price move above $28.25 would be a positive sign for the bulls. Conversely, a falling RSI despite a higher price could suggest divergence, indicating a potential weakness in the rally.
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. There haven’t been any major developments this week, but the situation continues to be monitored.
- Central Bank Policy: The release of the Federal Reserve Minutes this week didn’t provide any major surprises regarding future interest rates. However, upcoming economic data releases could influence the Fed’s policy decisions, which could indirectly impact silver prices.
- Gold Price Movement: Gold prices continue to hover near all-time highs, potentially influencing silver due to their correlation as safe-haven assets. Keep an eye on how gold prices react to upcoming economic data.
- Upcoming Inflation Reports: Inflation reports scheduled for release this week could influence investor sentiment and potentially impact silver prices. Silver can act as a hedge against inflation.
Stay Informed, Stay Vigilant, and Happy Stacking!
