Silver: This Level Could Invite Massive BuyingGold (August) / Silver (July)
Gold, last week’s close: Settled at 2349.1, up 31.1 on Friday and 24.1 on the week
Silver, last week’s close: Settled at 29.472, up 0.406 on Friday and 0.032 on the week
Silver futures corrected more than 12% from the May peak, and we could have seen a constructive capitulation on Thursday and Friday. We have always said the 50-day moving average is critical for Silver, and it tends to stay above or below it for an extended period of time. It comes in today at 29.12, rising from $29 through the middle of last week. Silver traded as low as 28.73 before settling the week at 29.472. That low also tested a critical .382 retracement back to the low of the year. We tend to believe markets in an uptrend (or downtrend) will remain strongly in such while holding a .382 retracement. The next few session will prove critical for Silver and we believe a close above rare major four-star resistance at 30.23-30.36, which aligns with Wednesday’s Fed gap settlement, will invite a tailwind of fresh buying.
Bias: Bullish/Neutral
Resistance: 2341.2-2344**, 2349.1-2354.8****, 2357.8-2358.8**, 2370.2***
Support: 2329.7-2332.9***, 2322.5-2324.3**, 2316.7-2318.5***, 2308.7-2310.9***, 2302.4-2304.5***, 2227.5-2256.4***
Silver (July)
Resistance: 29.57-29.72***, 29.85-29.87**, 29.94-29.99***, 30.07-30.09**, 30.23-30.36****
Pivot: 29.37-29.47
Support: 29.06-29.13***, 28.96**, 28.70-28.80****
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