After examining the movements of silver across various time frames since my last analysis, it’s evident that it continues to face bearish pressure as we head into 2024.
Despite the increasing global demand for silver in solar panels, silver futures find themselves at a critical juncture. They are trading just below the key resistance level of $30.646, following a significant rebound from the lows of $29.185 on December 20, 2024.
Traders are undoubtedly awaiting the inauguration of Elected-President Donald Trump on January 20, 2025, as his stance on interest rates and potential favor towards cryptocurrency could greatly influence market dynamics. The uncertainty surrounding his policy decisions could lead to considerable volatility in precious metals until clear strategies are established.
Market participants are closely monitoring whether momentum can break past the notable resistance at $30.346. The 9-day and 20-day moving averages are nearing a bearish crossover by falling below the 100-day moving average.
To navigate this pivotal moment, I have evaluated silver’s technical formations across several time frames to identify essential support and resistance levels, as well as potential targets for traders.
Weekly Chart Insights: Silver futures continued their decline in the second week of this month after hitting a high of $33.323, resulting in the formation of a bearish candle, which was confirmed by another bearish candle in the third week.
While there was some reversal in the third week after reaching a low of $29.185, this week could prove crucial if silver futures fail to break above the immediate resistance at $30.354.
Daily Chart Insights: On December 20, 2024, the 9-day moving average executed a bearish crossover by moving below the 20-day moving average and has since dipped below the 100-day moving average, raising concerns among bearish traders, with silver futures currently trading under the 9-day moving average at $30.343.
Furthermore, the 20-day moving average is on the verge of crossing below the 100-day moving average, indicating another potential bearish crossover.
Silver futures witnessed a sharp drop on December 12, 2024, after reaching a high of $33.323, but initiated a bounce from December 20; however, they have faced considerable resistance since December 23, 2024, in maintaining levels above the 200-day moving average.
Strategic Takeaways for Traders
Given the current scenario, silver futures seem poised for exhaustion unless they achieve a strong breakout above $30.354. For traders, this creates an opportunity: any rebound from current levels may provide an ideal chance to consider opening short positions, as the short-term upside appears limited.
Disclaimer: This analysis is based solely on technical observations and should not be considered financial advice. Readers are encouraged to make trading decisions at their own discretion, as the author holds no position in silver.
