Silver Price Daily Forecast – Silver Rebounds After Quick Sell-Off

Silver Video 19.05.21.

Silver Received Support Near $27.50

Silver made an attempt to get below $27.50 but returned back above $28.00 while the U.S. dollar was mostly flat against a broad basket of currencies.

The U.S. Dollar Index failed to settle below the support at 89.75 and made an attempt to settle above the 90 level. In case the U.S. Dollar Index manages to get back above the 90 level, it will move towards the resistance at 90.30 which will be bearish for silver and gold price today.

Meanwhile, gold is moving higher. Gold has recently managed to get above $1875 and is moving towards the $1900 level. In case gold gets to the test of this level, silver and other precious metals will get more support.

Gold/silver ratio did not manage to settle below the 66 level and rebounded towards the 20 EMA at 67.30. If gold/silver ratio settles above this level, it will head towards the resistance at the 50 EMA at 67.80 which will be bearish for silver.

Technical Analysis

Silver has recently made an attempt to settle below the support at $27.50 but failed to develop sufficient downside momentum and rebounded above $28.00.

The nearest resistance level for silver is located at $28.30. If silver manages to settle above this level, it will head towards the next resistance at $28.90.

A move above the resistance at $28.90 will push silver towards the resistance at $29.30. In case silver gets above $29.30, it will head towards the resistance at $29.85.

On the support side, the nearest support level for silver is located at $27.75. In case silver declines below this level, it will move towards the support at $27.50. A successful test of the support at $27.50 will open the way to the test of the support at the 20 EMA near $27.10.

From a big picture point of view, traders should note that the recent pullback was quickly bought which indicates that demand for silver remains strong, and that silver may benefit from inflation worries which currently put pressure on other assets.

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