Silver long-term technical analysis
This year, economic recovery optimism boosted the market and drive traders out of safe-haven assets. Silver prices continue to add more gains for now. The price jumped to as high as $30.035 after retail traders frenzy buying. The bullish pressure immediately reversed and the price corrected toward $26.00.
In the long-term, the price of silver expected to continue moving upward especially if the U.S dollar continues to weaken. Traders will monitor closely the U.S treasury yield which continues to increase at the current time.
We are optimistic that the silver price will continue its bullish trend and target $31.50 also $35.25 in the long-term. This month silver price bought sharply caused by retail Frenzy buying. The retail buying only caused a lot of volatility, similar to what happened to share prices such as GME, AMC, and BB.
Despite the unwinding in the silver price, we think traders could continue to hold long positions for the long-term.
On the weekly chart, the silver price has crossed above the orange box area and continues to maintain the positions above it. The price currently moving upward slowly and will try building more bullish pressure. Similar to the monthly chart, $31.50 and $35.25 is the bullish target.
Silver price situation on the daily chart is bullish after the bounce from the orange box area. The price needs to print a higher high above $30.00 handle now to continue its bullish trend. Traders could continue to use the orange box area as the level to enter long positions when bearish corrections happen.
If traders miss the chance to enter long positions near the orange box area then it is better to wait for now. Traders who have long positions will place stop orange below the $25.00 handle. On the upside, $31.50 and $35.25 is the long-term target to watch.