Silver Price Daily Forecast – Another Test Of Resistance At $27.50

Silver Video 05.01.21.

Silver Continues To Move Higher

Silver is trying to settle above the resistance level at $27.50 while the U.S. dollar is losing ground against a broad basket of currencies.

The U.S. Dollar Index failed to get above the resistance at the 90 level and is trying to settle below the nearest support level at 89.75. If this attempt is successful, the U.S. Dollar Index will head towards the recent lows near 89.40 which will be bullish for silver and other precious metals.

Meanwhile, gold gained strong momentum and is testing the $1950 level. RSI has just entered into the overbought territory but there is still plenty of room to gain additional momentum. If gold continues to move higher, silver will get additional support.

Gold/silver ratio did not manage to settle below the 71 level and remains in a tight range between the support at 71 and the resistance at 72. If gold/silver ratio declines below the support level at 71, it will gain additional downside momentum and head towards the next support level which is located at the recent lows at 69.75 which will be bullish for silver.

Technical Analysis

Silver continues its attempts to settle above the nearest resistance level at $27.50. This level has already been tested several times and proved its strength. In case silver gets above the resistance at $27.50, it will get to the test of the next resistance level at $27.75.

A successful test of the resistance at $27.75 will show that silver is ready to get closer to previous year’s highs. The next resistance is located at $28.30. A move above this level will push silver towards the resistance at $28.90.

On the support side, the nearest support level for silver is located at $27.00. This support level has been tested during the current trading session, and silver quickly rebounded closer to $27.50.

If silver declines below the support at $27.00, it will move towards the next support level at $26.70. A move below this level will open the way to the test of the next support at $26.30.

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