Silver: Bears on Top Despite Growing Demand
2024.12.26 06:15
Upon analyzing the movements of the across different time frames since I wrote my last analysis, 2024, I have observed that they remain under bearish pressure.
Despite a strong demand for silver in solar panels worldwide, silver futures are teetering at a pivotal juncture. They are trading just shy of the crucial $30.646 resistance level after staging a sharp reversal from the lows of $29.185 on Dec. 20, 2024.
Undoubtedly, the traders are waiting for the Elected-President Donald Trump to join office on Jan. 20, 2025, who is not in favor of further interest rate cuts and could show his love for crypto currency. No one knows the real position after the joining of President Donald Trump, but precious metals could go through extreme indecisiveness till he finally comes up with his policy changes.
Traders are watching closely to determine whether the momentum can break through the significant resistance at $30.346. The 9 DMA and 20 DMA are about to complete a bearish crossover by coming below the 100 DMA.
To navigate this critical moment, I have analyzed silver’s technical formations across multiple time frames to uncover key levels of support, resistance, and potential targets for the traders.
Weekly Chart Insights: Silver futures continued to slide during the second week of this month after testing a high at $33.323, which resulted in the formation of a bearish candle got confirmation with the formation of one more bearish candle during the third week of this month.
Undoubtedly, some reversal was seen during the third week after testing a low at $29.185 but this week could be decisive if the silver futures could not find a breakthrough above the immediate resistance at $30.354.
Daily Chart Insights: 9 DMA had formed a bearish crossover by moving below the 20 DMA on Dec. 20, 2024, and has moved even below the 100 DMA causing a lot of bearish concern, as the silver futures trading below the 9 DMA at $30.343.
Secondly, the 20 DMA is about to cross the 100 DMA to form one more bearish crossover shortly.
Notably, silver futures experienced a sharp decline on Dec.12, 2024, after testing a high at $33.323 before starting some bounce back from Dec.20 but facing stiff resistance since Dec. 23, 2024, to sustain above the 200 DMA.
Strategic Take away for Traders
Given the current setup, silver futures appear primed for exhaustion unless they secure a strong breakout above $30.354. For traders, this presents an opportunity: any bounce from the current levels may serve as a chance to initiate a short position, as the upside appears limited in the near term.
Disclaimer: This analysis is based solely on technical observations and does not constitute financial advice. Readers should make trading decisions at their own risk. The author holds no position in silver.
