Silver Price Technical Analysis: July 5, 2024
Silver Price Technical Analysis: July 5, 2024
Key Points and Takeaways:
- Monthly chart: Silver price confirmed bullish breakout intact, long-term outlook positive (cautious optimism).
- Weekly chart: Bulls reclaim $33.00, potential for retest of resistance.
- Daily chart: Price rebounds after finding support, needs confirmation above $32.50.
- 4-Hour chart: RSI climbs above 50, short-term buying pressure returns.
Silver Stackers,
Welcome to today’s silver price technical analysis, wrapping up a volatile week for the silver market on July 5th, 2024. The silver market experiences a welcome rebound after a sharp decline earlier in the week. The bulls managed to reclaim the key support level of $33.00. 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: Long-Term Uptrend Still in Play
The monthly chart continues to offer a cautiously 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. However, the volatility experienced this week highlights the need for caution and close monitoring of future price action.
Weekly Chart: Bulls Back in Control (For Now)
The weekly chart presents a cautiously optimistic picture. The bulls were able to reclaim $33.00 by the end of the week, which is a positive sign. This could potentially lead to a retest of the resistance level around $35.00 that challenged the bulls earlier in the week. However, a strong weekly close above $33.00 is crucial to confirm the continuation of the uptrend.
Daily Chart: Price Needs Confirmation Above Support
The daily chart presents a cautiously optimistic picture. The price has rebounded after finding support near $32.00 earlier in the week. This is an encouraging sign for the bulls, but they need to show further upward momentum to maintain control. A confirmed break above $32.50 and a retest of $33.00 would be a very bullish sign.
4-Hour Chart: Short-Term Buying Pressure Returns
The 4-hour chart offers a cautiously optimistic picture. The RSI has climbed above 50, indicating a return of short-term buying pressure. This is a positive sign for the bulls and suggests that they are regaining some control after the recent pullback. A sustained move above 55 on the RSI, coupled with a confirmed break above $33.00 on the daily timeframe, would be a very bullish sign.
Looking Beyond the Charts: Key Events on the Horizon
While technical analysis provides valuable insights, a holistic approach is crucial, especially after a week of significant price swings:
- FOMC Meeting Outcome: The recent Federal Open Market Committee (FOMC) meeting may continue to impact the market in the coming days. Investors will be analyzing the Fed’s policy decisions and their potential impact on the US dollar and 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 bulls reclaiming $33.00 on the weekly chart with a potential retest of resistance, the price rebounding after finding support on the daily chart, and the return of short-term buying pressure on the 4-hour chart are all developments to watch closely.
The recent market volatility highlights the importance of risk management. While the long-term outlook for silver remains positive, short-term fluctuations are to be expected. 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 stacker, focus on your stacking goals and view this volatility as a potential buying opportunity depending on your risk tolerance. Remember, the silver market is inherently volatile, and conducting your own research and due diligence is paramount.
