Silver is currently trying to settle above $28.00.
Silver Video 31.05.21.
Silver continues to trade in the range between the support at $27.75 and the resistance at $28.30 while the U.S. dollar is flat against a broad basket of currencies.
U.S. markets are closed today in observance of Memorial Day, and the U.S. Dollar Index lacks direction. It has settled near 90 and made an attempt to move below this support level but failed to develop sufficient downside momentum. The next support level for the U.S. Dollar Index is located at 89.75. A move towards this level will provide support to silver and gold price today, but it remains to be seen whether U.S. dollar will be able to gain any momentum in holiday-thinned trading.
Meanwhile, gold continues its attempts to settle above the resistance at the $1900 level. In case gold manages to stay above $1900, it will gain upside momentum which will be bullish for silver. I’d note that RSI remains in the overbought territory, but it remains below extreme levels that were seen back in August 2020 so there is some room to gain additional momentum in case the right catalysts emerge.
Gold/silver ratio has recently tested the support at the 50 EMA at 67.90 but did not manage to settle below this level. If gold/silver ratio gets below the 50 EMA, it will move towards the 20 EMA at 67.70 which will be bullish for silver.
Silver is currently trying to settle above the $28.00 level. If this attempt is successful, it will head towards the resistance at $28.30.
A move above the resistance at $28.30 will push silver towards the next resistance level which is located at $28.90. A successful test of this level will open the way to the test of the resistance at $29.30.
On the support side, the nearest support level for silver is located at $27.75. If silver declines below this level, it will move towards the support which is located at the 20 EMA at $27.50. A move below the 20 EMA will open the way to the test of the support at $27.00.
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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.