Silver testing major support zone
After a 30% plunge from its peak in February due largely to the dollar’s big rally and surging interest rates, silver has now reached a major support area.
At around $18.50 per announce, the commodity might have become too cheap. Will we see the return of the bulls as the metal tests THIS key support area?
As per the above chart, the area between $18 to $19 was previously a major resistance zone. Silver finally broke above this area in July 2020 when central banks and governments were throwing money at the economy like there’s no tomorrow as the global economy plunged into a deep recession because of the covid lockdowns.
Two years on, we are now back to that exact same area.
Previous resistances often turn into support once broken. I feel like silver is heavily undervalued and significantly oversold. A bounce of some sort should be expected here. But the potential for a much larger recovery cannot be ruled out.
At around $18.50 per announce, the commodity might have become too cheap. Will we see the return of the bulls as the metal tests THIS key support area?
As per the above chart, the area between $18 to $19 was previously a major resistance zone. Silver finally broke above this area in July 2020 when central banks and governments were throwing money at the economy like there’s no tomorrow as the global economy plunged into a deep recession because of the covid lockdowns.
Two years on, we are now back to that exact same area.
Previous resistances often turn into support once broken. I feel like silver is heavily undervalued and significantly oversold. A bounce of some sort should be expected here. But the potential for a much larger recovery cannot be ruled out.
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