Silver Bulls Running Into A Wall Of Daily Resistance Towards 24.00

Silver Bulls Running Into A Wall Of Daily Resistance Towards 24.00

  • Trade Ideas
  • Commodities
  • 2022, 20 January

Brief:

  • Silver is performing into a critical supply area on the daily chart.
  • Bulls look to 24.00 while the bears eye a correction back to test the 38.2% fibo. 

The price of silver has tracked gold higher of a sudden, yet not fully explained, at least as far as fundamentals gold rush for gold. US Treasury yields have retreated from near two-year highs on 2-year and 10-year notes.

Consequently, the greenback is pulling back which can explain some of the moves in precious metals, but the speed and distance for which gold and silver have moved are outside of the average ranges we have seen of late. Nevertheless, silver has spiked into what might be expected to be an area of supply as follows:

The 24 area is where price has reacted a number of times in the past, so it would be anticipated to offer the bulls a hard time in conquering it. As it stands, the 38.2% Fibonacci retracement level aligns with the prior day's high, so this could be a compelling level of support for the sessions ahead. 

Suggestion:

Buy above 23.85 for 24.35 and 24.55

Else

Sell below 23.85 for 23.60 and 23.38

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