Silver Price Daily Forecast – Support At $14.60 Stays Strong

Silver Video 04.05.20.

Silver Stays In The Trading Range Between $14.60 And $15.50

Silver continued to trade below the 20 EMA at $15.05 as global markets were under pressure due to increased U.S. – China tensions.

The U.S. dollar is showing strength amid global risk-off sentiment, and the U.S. Dollar Index, which measures the U.S. dollar strength against a broad basket of currencies, has returned back above 99.

For silver, the U.S. dollar strength is a negative catalyst. Together with the broad-based sell-off seen in many asset classes, the U.S. dollar strength creates an unfavorable setup for near-term silver upside.

Interestingly, gold still manages to stay above the important $1700 level. In case gold holds above this key level, the whole precious metal segment will likely see an additional influx of new investor money, which would be bullish for silver.

In recent days, precious metals experienced some downside pressure which was likely related to profit taking activity after the recent upside move. However, silver continues to receive solid support above $14.60 which shows that the profit-taking sell-off is limited at this point.

It remains to be seen whether silver will be able to withstand a broader sell-off in the global markets in case continued poor economic data puts additional pressure on stocks.

Technical Analysis

While silver trades in a wide range between $14.60 and $15.50, it has recently settled below the 20 EMA at $15.05. Silver has already tested the support level near $14.60 several times, and each attempt to settle below this level was met by increased buying activity.

Nevertheless, silver’s inability to get above the 20 EMA increases risk that one of the next attempts to get below $14.60 will be successful. A global sell-off combined with the U.S. dollar strength may be the catalysts required for such a move.

In this case, silver could quickly gain additional downside momentum and head towards the next support level in the $13.80 – $14.00 area.

On the upside, the nearest resistance level for silver is the 20 EMA at $15.05 followed by the 50 EMA at $15.45. In case the 50 EMA level is breached to the upside, silver will gain upside momentum and head towards the test of April highs at $14.80.