Deja Vu All Over Again for Silver?
Silver began a monster rally about a year ago. Now the technicals could be lining up similarly.
First, consider how XAGUSD dumped after hitting resistance at its 50-day simple moving average (SMA) in late March. Prices quickly stabilized and then entered a period of sideways consolidation. They soon pushed above the 50-day SMA and started moving higher again. These events happened last year on May 7 and this year on May 3.
Next is the tight ascending range, tracked upward by the 21-day exponential moving average (EMA). That happened last June and it’s been occurring again in the past month:
Third, notice how the 50-day SMA recently flirted with crossing under the 200-day SMA: an attempted but unsuccessful “death cross.”
Finally, the key question: Where’s the resistance that could mark a breakout? Last year, it was a close above the 52-week high of $19.65 (September 2019). Using that same logic, this time traders may be watching the recent peak of $30.14.
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First, consider how XAGUSD dumped after hitting resistance at its 50-day simple moving average (SMA) in late March. Prices quickly stabilized and then entered a period of sideways consolidation. They soon pushed above the 50-day SMA and started moving higher again. These events happened last year on May 7 and this year on May 3.
Next is the tight ascending range, tracked upward by the 21-day exponential moving average (EMA). That happened last June and it’s been occurring again in the past month:
Third, notice how the 50-day SMA recently flirted with crossing under the 200-day SMA: an attempted but unsuccessful “death cross.”
Finally, the key question: Where’s the resistance that could mark a breakout? Last year, it was a close above the 52-week high of $19.65 (September 2019). Using that same logic, this time traders may be watching the recent peak of $30.14.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
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