Silver Price Technical Analysis: July 19, 2024
Silver Price Technical Analysis: July 19, 2024
Key Points and Takeaways:
- Monthly chart: Silver price confirmed bullish breakout intact, long-term outlook bullish.
- Weekly chart: Bullish momentum regains strength with a decisive close above $36.00.
- Daily chart: Price breaks above resistance at $37.00-$38.00, potential retest of highs or further upside.
- 4-Hour chart: RSI breaks above 50, short-term buying pressure surges.
Silver Stackers,
Welcome to today’s silver price technical analysis, diving into the silver market on July 19th, 2024. In a dramatic reversal from the earlier part of the week, the silver market experiences a strong bullish breakout. The bulls have regained control after successfully overcoming the key resistance zone around $37.00-$38.00. This price action suggests a reinvigoration of the uptrend. We’ll analyze various timeframes to understand how this recent development 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 on Track
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 Traction
The weekly chart presents a strongly bullish picture. The bulls achieved a decisive close above $36.00. This is a very positive sign and significantly strengthens the bullish momentum on the weekly timeframe. As long as the bulls can hold above this level, the uptrend is likely to continue.
Daily Chart: Bulls Charge Through Resistance
The daily chart presents a bullish picture. The price has broken above the resistance zone around $37.00-$38.00. This is a significant technical development and indicates that the bulls are back in control in the near term. The next potential target on the upside could be a retest of the recent highs around $38.50 or even a move towards $40.00. Conversely, a sustained move below $37.00 could indicate a short-term pullback.
4-Hour Chart: Short-Term Buying Pressure Explodes
The 4-hour chart offers a strongly bullish picture. The RSI has broken above 50 and is now surging upwards. This indicates that short-term buying pressure has exploded after being subdued earlier in the week. A sustained move above 60 on the RSI would be a very bullish sign for the immediate future.
Looking Beyond the Charts: Inflation Data in Focus
While technical analysis provides valuable insights, a holistic approach is crucial, especially after a strong 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 lead to further gains in silver prices.
- 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.
Stay Informed, Adapt, 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 decisive close above $36.00 strengthening bullish momentum on the weekly chart, the price breaking above resistance at $37.00-$38.00 with potential for a retest of highs or further upside on the daily chart, and the explosion of short-term buying pressure on the 4-hour chart are all developments to watch closely.
The recent market action underscores the importance of adaptability in the silver market. The bulls were able to overcome a key hurdle and are back in control. Be prepared to adjust your strategy based on market developments. If you’re a long-term investor, this breakout is a positive sign, and you may want to consider adding to your holdings depending on your risk tolerance and overall plan. If you’re a stacker, stay focused on your stacking goals and don’t chase the market. Remember, the silver market is inherently volatile, and conducting your own research and due diligence is paramount.
