Silver long-term technical analysis
Silver staged a gain and confirmed July bullish pattern in August. The price gained from $16.775 to $17.515 and continued higher in August.
Overall, the upward movement of silver triggered by increasing tension around the world. Market participants mood are timid as North Korea headline deluging the market. There were at least three missile launch and a nuclear test in the rogue country which put the neighboring country on alert. The market also observe President Trump reaction which
In August, the market also observes President Trump reaction which pours oil on the raging fire by telling reporters North Korea action will be met by “Fire & Fury.” Though the first remark followed by softer approach later as President Trump outlying “All options are on the table” for North Korea case.
While the press conference manages to cool down the geopolitical tension, North Korea continues to provoke U.S and ally by the latest nuclear test. There is no sign of lower tension soon which is good for safe-haven assets such as gold, yen, and silver. However, we hope “War” option is “off” from President Trump table.
Click here to see previous Silver long-term technical analysis August 2017
Silver gained for the second month and closed higher to confirm bullish reversal pattern produced in July. Although the trend switches to bullish, the precious metal still trading inside $16.00 – $18.50 range which makes it possible for silver to turn lower after reaching $18.50.
If the bull could clear $18.50 in several months, silver will enjoy a medium – long term bullish trend.
The bullish trend of silver also confirmed on the weekly chart. This week, silver move past $17.73 and print a higher high. If the price close above $17.73, it will use the broken resistance as support level to target $18.50.
Similar to the weekly and monthly chart, silver on the daily chart show a bullish move above $17.73. The bull needs to close the price above $17.73 today to ensure more upward momentum in coming day.
Bullish: Breakout of $17.73 happen, traders could look for long setup near the broken resistance with a stop below $17.24.
Bearish: There are two possible areas to short. First is $18.50 which is above the current level, and second is $17.73. The second option will wait for the bull failure to close the price above $17.73. If a bearish pattern emerges, it is the first indication for short.