Silver Analysis, Bears in controlHello everyone, as we all know the market action discounts everything :)
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XAGUSD is bearish on the long-term outlook. The sellers were in charge of the Silver market since June and the bears’ momentum has been increasing. The price has been decreasing accordingly.
The market has pushed above the 23 levels and holding near the support zone, and all the former support levels of 25 and 24 has turned into resistance levels.
Using the Elliot wave theory we can see that the market is having a corrective wave right now which could push it near the 24$ zone where a battle will happen between the Bears and Bulls, and if the Bears wins then the price will be going down near the 22$ level as confirmed by the Elliot theory.
Different Scenarios for the market :
Scenario 1 :
The Market is holding at 23.709 near the support zone from 23.649 to 23.437, The bears are trying to drop the market as much as they can so we could be seeing a breakout happening at that level that would lead the market near the 22$ level.
Scenario 2 :
The Bulls are trying to gain control back over the market as we saw from the last movement on August 23, where the market price jumped from 22.897 and hit 23.938, but they will have to show a lot of power to break the resistance zone at 24.004 to 24.147, But if they were able to break that resistance then we will be seeing the market price going back up near the 25$ level.
Technical indicators show:
1) The market is below the 10 20 50 100 200 MA and EMA (Bearish sign)
2) The MACD is below the 0 line showing that the market is Bearish, With a positive crossover between the MACD line and the Signal line that explains the latest push that happened.
3) ADC is at 48.73 showing that the market is trending, With a negative crossover between DI+ (15.51) and DI- (29.99)
Support & Resistance points :
support Resistance
1) 23.649 1) 24.004
2) 23.437 2) 24.147
3) 23.294 3) 24.359
Fundamental point of view :
Silver prices rallied and remained buoyed, closing with a doji day at the highs of the trading session. This came despite a selloff in gold prices. Durable goods orders declined less than expected and new orders ex-transportation were unchanged. The dollar eased slightly, which helped silver prices gain a toe hold.
Silver of course has a certain amount of an industrial component built into it, and it is worth noting that industrial numbers have fallen quite a bit over the last several weeks. That being said, if we see the US dollar sell-off drastically, it is likely that the silver market may catch a bit of a bid, at least temporarily based upon that alone. According to fxempire.
This is my personal opinion done with technical analysis of the market price and research online from fundamental analysts and news for The Fundamental point of view, not financial advice.
If you have any questions please ask and have a great day !!
Thank you for reading
