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Silver Price Daily Forecast – Silver’s Rally Abruptly Ends

By:
Vladimir Zernov
Published: Feb 2, 2021, 15:27 UTC

Silver gained strong downside momentum as retail traders rushed out of speculative plays.

Silver Price Daily Forecast – Silver’s Rally Abruptly Ends

In this article:

Silver Video 02.02.21.

Silver’s Pullback Turns Into Panic

Silver gained strong downside momentum and is currently trying to settle below $26.70 as retail traders rushed out of squeeze plays.

Meanwhile, the U.S. dollar is gaining ground against a broad basket of currencies, which puts additional pressure on silver and gold price today. The U.S. Dollar Index has recently managed to get above the resistance at 91.10 and continues to move higher. The next significant resistance level for the U.S. Dollar Index is located at 91.50. If the U.S. Dollar Index gets to the test of this level, silver will likely move lower.

Gold pulls back after an unsuccessful attempt to settle above the 50 EMA at $1865. Currently, gold is testing the nearest support level at $1830. If gold gets below $1830, it will gain additional downside momentum and head towards the $1800 level which will be bearish for silver and other precious metals.

Gold/silver ratio has rebounded from recent lows at 62.50 and is currently trying to settle above 67.50. The nearest material resistance level for gold/silver ratio is located near 69.50. If gold/silver ratio gets to the test of this level, silver will find itself under additional pressure.

Technical Analysis

silver february 2 2021

Silver gained strong downside momentum as retail traders rushed out of short squeeze plays. Currently, silver is trying to settle below the nearest support level at $26.70. If this attempt is successful, silver will move towards the next support level at $26.30.

A successful test of the support at $26.30 will open the way to the test of the next support level which is located at the 20 EMA at $26.15.

On the upside, the previous support at $27.00 will likely serve as the first resistance level for silver. A move above this level will push silver towards the next resistance level at $27.50. If silver gets above this level, it will get to the test of the next resistance at $27.75.

It should be noted that silver trading is very active today so traders should note that many levels may be simply ignored if the current panic continues.

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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