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Silver Price Daily Forecast – Resistance At $26.30 Stays Strong

By:
Vladimir Zernov
Published: Mar 11, 2021, 14:58 UTC

Silver tested the 50 EMA at $26.30 but failed to move higher.

Silver

In this article:

Silver Video 11.03.21.

Silver Tries To Continue Its Rebound

Silver has recently made an attempt to settle above the resistance at the 50 EMA at $26.30 while the U.S. dollar remained under pressure against a broad basket of currencies.

The U.S. Dollar Index has managed to get below the support at 91.75 and tested the next support level at 91.50. RSI remains in the moderate territory, and there is plenty of room to gain additional downside momentum.

In case the U.S. Dollar Index declines below 91.50, it will head towards the next support at 91.30 which will be bullish for silver and gold price today. Weaker dollar is bullish for precious metals as it makes them cheaper for buyers who have other currencies.

Gold managed to settle above the resistance at $1720 and is moving towards the 20 EMA at $1750. If gold gets to the test of the 20 EMA, silver will get additional support. I’d note that the recent rebound in gold markets was not very strong, and it remains to be seen whether gold will be able to develop significant upside momentum.

Gold/silver ratio remains close to its 20 EMA at 66.30. If gold/silver ratio fails to develop additional downside momentum and gets back above the 20 EMA, silver may find itself under pressure.

Technical Analysis

silver march 11 2021

Silver has recently tested the resistance at the 50 EMA at $26.30 but did not manage to develop sufficient upside momentum. The 20 EMA is located at $26.40 so silver has to deal with material resistance in the $26.30 – $26.40 area.

In case silver manages to settle above the 20 EMA, it will gain additional upside momentum and head towards the next resistance level at $26.70. If silver gets above the resistance at $26.70, it will continue its upside move and head towards the resistance at $27.00.

On the support side, the nearest support level for silver is located at $25.85. In case silver gets below this level, it will move towards the support at $25.55. A successful test of the support at $25.55 will open the way to the test of the next support level at $25.20.

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About the Author

Vladimir is an independent trader and analyst with over 10 years of experience in the financial markets. He is a specialist in stocks, futures, Forex, indices, and commodities areas using long-term positional trading and swing trading.

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