Silver Long term Technical Analysis July 2020

Silver long-term technical analysis

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The bullish movement of silver started after May bounce from the $14.00 support level. The price has made three consecutive bullish closes. This month, the prices traded near the $18.50 resistance level. If it could not move above the resistance level then traders will prepare for bearish rejection and the start of a new bearish leg.

Meanwhile, silver prices might restart the consolidation between $16.80 – $18.50, the same range before April drop.

Monthly chart

Silver prices bounced from the $14.00 support level and returned near the $18.50 resistance level. The price currently hovering below the resistance level, above the $17.75 support level. Traders will observe the price reaction between $17.75 – $18.50 and determine if bullish breakout will happen or not.

Traders who have long positions could continue to hold the positions for now.

Weekly chart

On the weekly chart, silver prices continue moving higher after the bounce from $16.80 – $17.10 area. Silver prices slightly lower before it could reach $18.50 resistance level. Traders will monitor the movement between $17.75 – $18.50 area for now.

Daily chart

Similar to the weekly and monthly chart situation, silver prices currently undergo bullish swing. The upward movement obstructed near the $18.50 resistance level. If the price gets rejected from the $18.50 resistance level then silver might start moving lower again and target $16.80 – $17.10 area.

Trade plan

Traders are waiting for a reaction from the $18.50 resistance level as silver moving near it. No major bearish reaction up to today. If the price rejected from the resistance level then in the long-term it is possible silver could fall as low as $16.00.

Bullish strategy preferred under the current situation. However, traders could look for short positions near $18.50 with a tight stop above the level.

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