Silver Price Daily Forecast – Silver’s Attempt To Move Lower Gets Quickly BoughtSilver stays range-bound after an unsuccessful attempt to settle below $15.00.
Silver Video 28.04.20.
Silver Gets Support Below $15.00
Silver continues to trade in a range between the 20 EMA at $15.10 and the 50 EMA at $15.50 after an unsuccessful attempt to settle below $15.00.
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Gold also made an attempt to settle below the key $1700 level so the early sell-off looks to be connected to profit-taking in the precious metal space.
Meanwhile, the U.S. dollar continues to support precious metal upside, and the U.S. Dollar Index has settled below the psychologically important 100 level.
Equity markets are gaining ground once again so investors and traders favor riskier assets over safe havens like the U.S. dollar or U.S. Treasuries. It remains to be seen whether the precious metal space will also gain from the risk-on mode in the markets since the current stock market levels are already high and indicate a very modest level of fear.
Once the profit-taking activity in silver comes to an end, the weaker U.S. dollar could help silver gain more ground since it makes silver cheaper for buyers who have other currencies.
In addition, gold’s continuous presence at levels over $1700 per ounce will likely lead to an influx of new money into the whole precious metal sector and help silver show more upside.
Just like I wrote yesterday, silver found increased support in the $14.90 – $15.00 area and rebounded back above $15.00 and also above the 20 EMA at $15.10. Currently, silver can count on support in the area between $14.90 and $15.10.
In case this level is breached to the downside, silver will likely gain more downside momentum and head to test the recent lows near the $14.60 level. I’d also expect material support for silver at this level.
If silver manages to settle below $14.60, the current upside trend will end, and silver will likely start a new downside trend.
On the upside, the 50 EMA at $15.50 remains the first major resistance level for silver. In recent days, silver has shown some weakness with the high of each day being lower than the high of the previous day, but it also managed to close well above lows on each trading session.
In this light, silver maintains solid chances to test the 50 EMA level and head towards the recent highs near $15.80 if this test is successful.