Silver Price Daily Forecast – Silver Tries To Settle Above $15.50

Silver Video 11.05.20.

Silver Continues Its Upside Move

Silver gains ground at a time when the equity markets are under pressure due to fears about the resurgence of coronavirus in countries which have recently relaxed virus-related restrictions.

Interestingly, silver shows strength despite stronger dollar. The U.S. Dollar Index, which measures the strength of the U.S. dollar against a broad basket of currencies, is back above 100 as investors increase their purchases of safe haven assets.

Meanwhile, gold is mixed as it continues its efforts to stay above the key $1700 level. So far, profit-taking in gold did not lead to a material pullback, and there is hope that gold will soon be able to continue its upside move, which will be good for the whole precious market segment.

Silver has not played the role of a safe haven asset of last resort during the current crisis but the markets are so distorted by the unprecedented stimulus measures that it is surely possible for stocks to experience downside while silver and U.S. dollar rise at the same day.

With no material economic reports scheduled for release today, silver price dynamics will be dictated by technicals and the general market mood.

Technical Analysis

Silver broke out of the local downside trend and settled above the 50 EMA at $15.40. Now, silver will likely try to continue the rebound which started in mid-March.

To do this, silver will have to test April highs at $15.80. In case this test is successful, silver will gain additional upside momentum and head towards pre-crisis levels at $16.50, completing the rebound.

With RSI below 60, silver is far from being overbought, which is a bullish catalyst ahead of a potential test of the April highs.

On the support side, silver may get some support near the 20 EMA at $15.15 but the first major support level is located at $14.60. This level is crucial for the continuation of silver’s upside trend as silver will likely experience a rapid sell-off if it gets below $14.60.

In such scenario, silver may quickly find itself testing the next support area at $13.80 – $14.00. In this case, the current upside trend will come to an end, and silver will be ready for another downside move.