Silver’s Sweet Spot
Tommy Humphreys | Aug 04, 2014 12:41PM ET
In recent weeks, Silver has quietly pulled back into an area of important support/resistance:
Not only does the $20.00-$20.50 area represent important support/resistance, there are also a couple of other technical developments that make this a potential sweet spot for silver; the rising 50-day SMA is on the verge of crossing above the flat 200-day SMA (golden cross) -- there is added significance when a golden cross occurs near the apex of a falling wedge near an important area of support.
The Weekly chart of silver shows a descending triangle with clear bullish momentum divergences and a relative strength index (RSI-14), which is currently sitting right at the median line:
All signs point to this being a sweet spot for silver and a resolution to these chart patterns seems like it is quite likely to occur in August.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.