Silver Price Technical Analysis: July 8, 2024
Silver Price Technical Analysis: July 8, 2024
Key Points and Takeaways:
- Monthly chart: Silver price confirmed bullish breakout intact, long-term outlook bullish.
- Weekly chart: Bulls hold above $33.00, potential for further upside.
- Daily chart: Price consolidates after a strong rally, key resistance in sight.
- 4-Hour chart: RSI remains above 50, short-term buying pressure persists.
Silver Stackers,
Welcome to today’s silver price technical analysis, examining the silver market on July 8th, 2024. The silver market enters a consolidation phase after a strong upward move in the first half of the week. The bulls continue to hold control, but some profit-taking is evident after the recent rally. 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 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: Bulls Eyeing Further Upside
The weekly chart presents a bullish picture. The bulls have successfully held above $33.00 for the past two weeks, and a strong weekly close above this level would be a very bullish sign. If the bulls can manage this, they could potentially target even higher levels in the coming weeks.
Daily Chart: Consolidation Before Next Move?
The daily chart presents a neutral picture. The price has consolidated after the recent rally, and this is a normal and healthy development. The bulls are likely regrouping before their next move. A confirmed break above the resistance level around $35.00 would be a very bullish sign, while a sustained move below $33.00 could indicate a potential pullback.
4-Hour Chart: Short-Term Buying Pressure Remains
The 4-hour chart offers a cautiously bullish picture. The RSI remains above 50, indicating that short-term buying pressure persists. However, the RSI is starting to show some signs of divergence, which suggests that the price momentum may be slowing down. A sustained move above 60 on the RSI, coupled with a confirmed break above $35.00 on the daily timeframe, would be a very bullish sign.
Looking Beyond the Charts: Potential Market Catalysts
While technical analysis provides valuable insights, a holistic approach is crucial, especially after a period of strong price movement:
- Upcoming Earnings Season: The upcoming earnings season for major corporations could impact the market. Strong corporate earnings could strengthen the overall market sentiment and potentially benefit silver prices.
- Inventory Levels: Monitor changes in silver inventory levels. A continued decline in inventories could add further fuel to the current rally.
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 bulls holding above $33.00 on the weekly chart with further upside potential, the price consolidating after a strong rally on the daily chart with resistance in sight, and the persistence of short-term buying pressure on the 4-hour chart are all developments to watch closely.
The recent market action highlights 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 rallies. 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. Remember, the silver market is inherently volatile, and conducting your own research and due diligence is paramount.
