Silver Price Technical Analysis: July 11, 2024
Silver Price Technical Analysis: July 11, 2024
Key Points and Takeaways:
- Monthly chart: Silver price confirmed bullish breakout intact, long-term outlook bullish.
- Weekly chart: Strong weekly close above $33.00 maintains bullish momentum.
- Daily chart: Price consolidates after breakout, potential test of new support.
- 4-Hour chart: RSI pulls back but remains above 50, short-term buying pressure moderates.
Silver Stackers,
Welcome to today’s silver price technical analysis, diving into the silver market on July 11th, 2024. The silver market enters a consolidation phase after a strong breakout above $35.00 on July 10th. This is a normal and healthy development after a significant price move. The bulls are likely taking a breather before their next move. 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 in Play
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 Maintained
The weekly chart presents a bullish picture. The strong weekly close above $33.00 last week is a very positive sign and maintains the bullish momentum on the weekly timeframe. As long as the bulls can hold above this level, the uptrend remains intact.
Daily Chart: Consolidation or Pullback?
The daily chart presents a neutral picture. The price has consolidated after the breakout above $35.00. This is a normal and healthy development, and it allows the bulls to regroup before their next move. A confirmed break above $36.00 would be a very bullish sign, while a sustained move below $34.50 could indicate a potential pullback on the daily timeframe. How the price reacts to this new support level around $34.50 will be crucial to watch.
4-Hour Chart: Short-Term Buying Pressure Moderates
The 4-hour chart offers a cautiously bullish picture. The RSI has pulled back from its highs but remains above 50, indicating that short-term buying pressure has moderated but hasn’t disappeared entirely. A sustained move above 60 on the RSI, coupled with a confirmed break above $36.00 on the daily timeframe, would be a very bullish sign.
Looking Beyond the Charts: Important Dates to Remember
While technical analysis provides valuable insights, a holistic approach is crucial, especially after a significant breakout:
- Upcoming Inflation Data: The release of key inflation data later this week could impact the market. Lower-than-expected inflation numbers could weaken the US dollar and potentially benefit silver prices.
- Central Bank Meetings: Pay attention to any upcoming central bank meetings, particularly those from major economies. These meetings can sometimes lead to market volatility, which can also impact 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 strong weekly close above $33.00 maintaining bullish momentum on the weekly chart, the price consolidating after the breakout on the daily chart with a potential test of new support, and the moderating 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. While the bulls are currently in control, periods of consolidation are to be expected, especially after strong breakouts. Don’t get discouraged by short-term pullbacks 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.
