Silver Price Daily Forecast – Silver Stays Above $17.00
Silver Video 25.05.20.
Silver Searches For A New Support Level Near $17.00
Silver continues to stabilize following the pullback after the major upside move which took silver from $15.50 to $17.50 in a matter of few days.
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Gold lacks upside momentum but stays firmly above the key $1700 level. Higher gold prices attract new money to the whole precious metal segment and are bullish for silver.
Gold/silver ratio stays above the 100 level but an attempt to get above 102 was met with increased resistance. Gold/silver ratio is elevated compared to pre-crisis levels so in case it continues the recent downside trend, silver will likely experience additional upside momentum.
The U.S. dollar is flat against a broad basket of currencies, and the U.S. Dollar Index has settled near the 100 level. Stronger U.S. dollar is bearish for silver since it makes silver more expensive for buyers who have other currencies, and the recent strength of the American currency put some pressure on silver.
The U.S. – China tensions continue to increase on a daily basis but it remains to be seen whether it will lead to additional strength in the precious metal segment. At this point, it’s hard to say that this is an important factor for silver price dynamics.
Technical Analysis
Silver continues to get support in the area between $16.50 and $17.00. Initially, the pre-crisis level at $16.50 served as the first support level for silver following its rapid rise from $15.50 to $17.50, but it looks like a higher support level at $17.00 may be formed in case silver manages to stay above it for the upcoming trading sessions.
In case silver settles below $17.00, it will likely head towards the next support at $16.50. If the downside momentum is strong enough, the 20 EMA level at $16.20 may be tested as well.
On the upside, the nearest resistance for silver is located at $17.50. In case this level is breached to the upside, silver will likely gain additional upside momentum and head towards the next resistance level at $18.15.
I’d note that RSI has left the overbought territory, increasing chances for the next upside move in case silver gets support from positive catalysts. In another bullish development, the 20 EMA has recently breached the 50 EMA to the upside, suggesting that the upside momentum continues to increase.
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