Silver Price Technical Analysis: July 24, 2024
Silver Price Technical Analysis: July 24, 2024
Key Points and Takeaways:
- Monthly chart: Silver price confirmed bullish breakout potentially under threat, long-term outlook uncertain.
- Weekly chart: Significant bearish engulfing pattern formed, strong bearish momentum.
- Daily chart: Price plunges below key support levels, potential for further decline.
- 4-Hour chart: RSI plunges to oversold territory, short-term buying pressure extremely weak.
Silver Stackers,
Welcome to today’s silver price technical analysis, examining the dramatic sell-off in the silver market on July 24th, 2024. After a volatile week that began with bullish momentum, silver prices have experienced a sharp decline. This price action is a major setback for the bulls and raises concerns about the sustainability of the recent 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: Bullish Breakout Potentially at Risk
The monthly chart, which previously offered a bullish perspective, now presents a more uncertain picture. The confirmed bullish breakout above the horizontal channel established since November 2023 is potentially under threat. A sustained close below the breakout level on the monthly chart would be a very bearish sign and could indicate a potential reversal of the uptrend.
Weekly Chart: Strong Bearish Momentum
The weekly chart presents a strongly bearish picture. A significant bearish engulfing pattern has formed on the weekly timeframe, signifying a strong reversal of the previous bullish momentum. The bulls will need a significant comeback next week to regain control and prevent further downside.
Daily Chart: Price Plunges Below Support
The daily chart presents a bearish picture. The price has plunged below all major support levels, including the previously crucial zone around $37.00-$38.00. This is a significant technical development and indicates that the bears are firmly in control in the near term. The next potential target on the downside could be a test of the lows from earlier in the year.
4-Hour Chart: Short-Term Buying Pressure Extremely Weak
The 4-hour chart offers a bearish picture. The RSI has plunged to oversold territory, indicating that short-term buying pressure is extremely weak. Oversold readings can sometimes indicate a potential short-term bounce, but in the context of the broader bearish trend, this bounce may be short-lived.
Looking Beyond the Charts: Significant Events Loom
While technical analysis provides valuable insights, a holistic approach is crucial, especially during periods of significant price declines:
- Central Bank Meetings: As mentioned earlier, central bank meetings later this week could impact the market. Hawkish monetary policy stances could further strengthen the US dollar and put downward pressure on silver prices.
- Geopolitical Tensions: Keep an eye on ongoing geopolitical tensions around the world. While these can sometimes lead to increased demand for safe-haven assets like silver, the current market sentiment may outweigh this factor.
Stay Informed, Manage Risk Accordingly, 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. However, the current situation demands caution and risk management. The confirmed bullish breakout on the monthly chart is potentially under threat, the weekly chart shows strong bearish momentum, the daily chart suggests a potential for further decline, and the 4-hour chart reflects extremely weak short-term buying pressure.
The recent sell-off highlights the importance of reassessing your risk tolerance. If you’re a long-term investor, this sharp decline may present an opportunity to add to your holdings at a lower price point, but only if it aligns with your overall investment strategy. If you’re a stacker, stick to your plan and don’t panic sell. However, you may want to hold off on new purchases until the market stabilizes. Remember, the silver market is inherently volatile, and conducting your own research and due diligence is paramount.
