Silver Rally Under Pressure Despite Growing Industrial Demand
2024.11.20 02:37
Upon analyzing the movements of across different time frames, I’ve observed that they remain under selling pressure, despite experiencing some volatility since November 14, 2024, after reaching lows of $29.793.
Despite a strong demand for its use in solar panels worldwide, silver futures have stuck in a narrow range of $31.605 – $30.887 in the daily chart as the market could remain low due to the changing geo-political scenario.
Undoubtedly, the silver futures have tested a new high at $34.921 on Oct. 22, 2024, followed by a continuous selling spree that could put a question mark on the levels tested recently.
In such an unstable scenario, technical indicators could define the further directional moves by the silver futures.
In the daily chart, silver futures could remain in the bearish territory as the 9 DMA along with the 18 DMA are about to come below the 50 DMA due to the formation of a bearish dozy star may push the silver futures to test the significant support at 200 DMA which is at $28.919.
Secondly, a breakdown below the 200 DMA could continue to keep the silver futures in bearish territory.
In case of an upward move, silver futures will have to sustain above the immediate resistance at $32.243, then only a move to test the next significant resistance at $34.095.
In the weekly chart, after the formation of the three consecutive bearish weekly candles, this week’s candle looks to be a reversal but looks ready to lose all gains this week as the silver futures are still in the downward channel. In such a scenario, this week’s closing level could define the further directional moves by the silver futures.
Secondly, the silver futures are trying to hold above the 18 DMA in a weekly chart if the silver futures do not sustain above this significant support, they could continue to define exhaustion in the upcoming weeks.
Finally, I conclude that the silver futures could take a decisive move during this week, the weekly closing at this significant level to define the further direction of silver prices.
Undoubtedly, the formation of a bearish crossover in the daily chart confirms a breakdown in silver futures during this week.
Disclaimer: All the readers are requested to take any position in silver at their own risk. The Author of this analysis does not hold any position in silver.
