When can it touch historical levels again?
By: Ahura Chalki
Market analyst – IFC Markets
Improvements in published economic data of the U.K., United States, China all have clear signals together; the recovery path was much even than forecast. Todays’ U.K. employment shows a -73K 3M/3M change in Employment numbers, to send the unemployment rate to 4.9% in February, the third consecutive month of decline. U.S. employment data also in line with Manufacturing and Industrial data altogether with vaccination progress raising the hopes, after acceptable Chinese improvement in GDP data, telling us that big economies, found the way of recovery.
Silver is one of the metals that can play the role of Safe-Haven and industrial metal at the same time. Positive economic data and a positive environment help the bulls. Negative financial data and hostile environment in the market will raise the safe-haven demands, which means Golds’ overflows requests find the way to Silver. On the other hand, positive economic data and a positive environment again help the market bulls grow more. Silver as an industrial material will find more demand in the recovery path.
In the daily chart, Silver created a range between 24.66 and 26,27. However, since the RSI shows 55, while price moves above the OBV trend line and chart’s trend line. Silver continues towards the $26.27 level, and therefore I think we should pay close attention to that level. Breathing above this level can open the door for 2021 high above $30. While technical and fundamental signs both supporting the more uptrend, however on the flip side, in a downtrend, we must watch closely 25.50 and then 24.90 before testing another decline under 24.66
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