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Silver Price Daily Forecast – Volatility Increases But Silver Still Holds Above $15.00

By:
Vladimir Zernov
Published: Apr 30, 2020, 14:03 UTC

Silver tests key support and resistance levels in one trading session.

Silver

Silver Video 30.04.20.

Silver Experiences Wild Trading Action Following The Release Of The U.S. Initial Jobless Claims Report

Yesterday, I wrote that calm trading between the 20 EMA at $15.10 and the 50 EMA at $15.50 was unlikely to continue for any material period of time and that tests of support and resistance levels were to be expected in the upcoming trading sessions.

Today, silver has already tested the resistance at the 50 EMA and two support levels during a rapid sell-off – the support in the $14.90 – $15.10 range and the support at $14.60.

The weak U.S. Initial Jobless Claims data has likely served as the catalyst for the rapid downside move in silver. In addition, it is likely that the failed test of the 50 EMA level also increased some traders’ desire to get out of silver.

Previously, market participants were able to shrug off negative economic data, but today the market is not ready to ignore the weak unemployment report, and the U.S. equity market is losing ground.

Yesterday, the Fed signaled that it still had additional resources to support the economy if necessary, and that’s bullish for the precious metal segment and bearish for the U.S. dollar.

However, the U.S. dollar managed to hold on to its previous levels and the U.S. Dollar Index stays just below the psychologically important 100 level.

Meanwhile, gold also experienced a sell-off but still stays near the crucial $1700 level. A sell-off in gold could trigger a corresponding sell-off in silver so silver traders must watch whether gold can stay above the $1700 level.

Technical Analysis

silver april 30 2020

Silver has successfully confirmed all major important levels within the current trading range. The support level at $14.60 continues to look strong, and so does the resistance level at the 50 EMA at $15.50.

Silver stays in the upside trend since any move towards the support level at $14.60 gets quickly bought. In case silver manages to stay above $15.00, another test of the resistance level at $15.50 will likely happen in the upcoming trading sessions.

In case silver breaches the support level at $14.60, the current upside trend will come to an end, and silver may experience a rapid sell-off which will take it to the next major support level in the $13.80 – $14.00 area.

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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