Silver Price Technical Analysis: July 23, 2024
Silver Price Technical Analysis: July 23, 2024
Key Points and Takeaways:
- Monthly chart: Silver price confirmed bullish breakout intact, long-term outlook bullish.
- Weekly chart: Closely watched weekly close; bulls need to hold above $28.00.
- Daily chart: Price sits right at support zone, potential breakout or breakdown.
- 4-Hour chart: RSI remains above 50, but struggles for momentum.
Silver Stackers,
Welcome to today’s silver price technical analysis, examining the silver market on July 23rd, 2024. The silver market finds itself at a critical juncture. After a week marked by a strong rally followed by a consolidation phase, the bulls and bears are locked in a tug-of-war for control. The price action today will be crucial in determining the short-term direction of silver. We’ll analyze various timeframes to understand how this recent price movement impacts the outlook. Remember, technical analysis is just one tool, and should not be used as sole investment advice.
Monthly Chart: Uptrend Still in Place
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: Bulls Need to Defend Gains
The weekly chart presents a neutral-to-bullish picture. The outcome of the current week’s close will be very important. A weekly close above $38.00 would be a positive sign and maintain the bullish momentum on the weekly timeframe. Conversely, a close below $38.00 could indicate a shift in sentiment and a potential deeper pullback next week.
Daily Chart: Support Test at a Crossroads
The daily chart presents a volatile picture. The price is currently hovering right at the key support zone around $37.00-$38.00. A confirmed break above $38.00 would be a bullish sign and could lead to a retest of the recent highs around $39.00. Conversely, a sustained move below $37.00 could indicate a bearish breakout and a potential deeper pullback on the daily timeframe.
4-Hour Chart: Short-Term Buying Pressure Lacks Conviction
The 4-hour chart offers a neutral picture. The RSI remains above 50, indicating that short-term buying pressure is still present, but it lacks the conviction seen earlier in the week. A sustained move above 60 on the RSI would be a bullish sign for the immediate future. However, a dip below 50 could indicate a further weakening of short-term buying pressure.
Looking Beyond the Charts: Earnings Season Continues
While technical analysis provides valuable insights, a holistic approach is crucial, especially during periods of heightened volatility:
- Corporate Earnings Season: Earnings season continues this week, and strong earnings reports from key companies could boost investor confidence and potentially lead to a weaker US dollar, which could benefit 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, 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 closely watched weekly close with bulls needing to hold above $38.00, the price testing support with a potential breakout or breakdown on the daily chart, and the lack of conviction in short-term buying pressure on the 4-hour chart are all developments to watch closely.
The recent market gyrations highlight the importance of risk management. The bulls and bears are currently battling it out, and the short-term direction remains uncertain. 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 investor, this consolidation is a normal part of the uptrend. If you’re a stacker, stick to your plan and don’t panic. Remember, the silver market is inherently volatile, and conducting your own research and due diligence is paramount.
