The price of silver is starting to move towards the $24.00 level, however, it has to be noted that the shiny metal is starting to seriously gold in terms of price gains despite this week’s rally.
While Gold has tackled the $1,900 level and set a new high for the year, silver is failing to set higher highs on the daily basis, as the Ukraine news has not turbo-charged silver the same way it has gold.
Precious metals have been rallying again, as a flight to safety has taken place, with stocks and Bitcoin sinking, with gold, silver, and US dollar have started to enjoy a strong bid.
Russia’s Foreign Ministry denied a claim by the U.S. and Britain that it’s added as many as 7,000 troops to what President Joe Biden has said are around 150,000 soldiers already near Ukraine’s borders.
European Union leaders will discuss the tensions today in Brussels. With financial markets being so news driven, it is difficult to see the outcome of the Ukraine situation right now.
Silver still has some way to travel before it officially starts to breakout technically, like gold has it sits at a 1-year high. Silver really needs to be breached the $24.50 level to get me excited.
According to the ActivTrader Market Sentiment tool retail traders are more bullish towards the shiny metal than last week, with 89 percent of traders still predicting further price gains ahead.
This sentiment skew is still worrying bullish for me. The technical only become worrying if we witnessed another rejection from the $24.00 area. Bulls do need to be alert this week.
Silver short-term Technical Analysis
The short-term technicals for silver show that a massive head and shoulders pattern has formed. It appears silver could be in the process of forming a final right hand shoulder to complete the bearish pattern, despite the Ukraine news.
A break above the $24.50 level could send a rocket under silver prices towards $27.00, which would invalidate the mentioned bearish price pattern. The Ukraine news will dictate
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Silver Medium-term Technical Analysis
The daily time frame show that the shiny metal is testing towards a key former triangle breakout, and bulls are largely struggling to move back inside the triangle.
According to the triangle, a rejection from current levels could weigh heavily on silver’s technicals, while a move above $24.00 could force a technical test of $26.00.
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