Technical analysis: Silver is forming a "double bottom" pattern
Due to Federal Reserve Chairman Powell's hawkish remarks at the European Central Bank's meeting in Portugal, acknowledging that the Fed's dual mission risk is more balanced, silver prices have risen.
Market analyst Christian Borjon Valencia said that the upward trend of silver remains unchanged, but both upward and downward directions are limited by downward channels. Although the trend chart has formed a "double bottom" pattern, buyers lack the motivation to clear the top of the channel, as implied by the relative strength index (RSI) being almost flat at the neutral midline.
To confirm the "double bottom" pattern, silver prices need to break through the next resistance level, which is $29.50. Once broken through, the next resistance level will be the high of $30.83 on June 21, followed by the high of $32.28 on May 29. Breaking through the latter will challenge the year to date high of $32.49.
On the contrary, if silver prices fall below $29.00, the next support level will be the low of $28.59 on June 26th. If it falls below this level, it may lead to a drop in silver prices to the low of $27.57 on April 15th.
Spot Silver Daily Chart
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