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Silver Price Daily Forecast – Silver Tries To Stabilize After Yesterday’s Sell-Off

By:
Vladimir Zernov
Published: Feb 3, 2021, 15:14 UTC

Silver is testing the nearest resistance level at $27.00.

Silver

In this article:

Silver Video 03.02.21.

Silver Attempts To Rebound

Silver  is currently trying to settle above the nearest resistance level at $27.00 while the U.S. dollar is mostly flat against a broad basket of currencies.

The U.S. Dollar Index has managed to settle above the resistance at 91.10 and made an attempt to get to the test of the next significant resistance level at 91.50 but faced resistance near 91.30. If the U.S. Dollar Index gets above 91.30, it will gain additional upside momentum which will be bearish for silver and gold price today.

Gold received support near $1830 and continues to trade in the range between this support level and the resistance level at the 50 EMA at $1860. If gold manages to settle above the 50 EMA, it will head towards the $1900 level which will be bullish for silver and other precious metals.

Gold/silver ratio failed to settle above 69.50 and pulled back closer towards the 68 level. It remains to be seen whether gold/silver ratio will be able to stay below 69.50 in the upcoming trading sessions as the recent downside move was triggered by speculative activity of retail traders which may switch to other instruments after the recent sell-off in silver and short squeeze stocks.

Technical Analysis

silver february 3 2021

Silver is currently testing the nearest resistance level at $27.00. If silver manages to get above this level, it will head towards the next resistance level at $27.50 although it may also face some resistance at $27.20.

RSI has left the overbought territory after the recent sell-off, so there is plenty of room to gain upside momentum in case the right catalysts emerge. A successful test of the resistance at $27.50 will push silver towards the next resistance level at $27.75.

On the support side, the nearest support level for silver is located at $26.70. If silver declines below this level, it will head towards the next support at the 20 EMA at $26.20. A move below the 20 EMA will open the way to the test of the support level at $25.85.

For a look at all of today’s economic events, check out our economic calendar.

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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