Silver Stumbles, What's Next?
Silver prices held below $49/oz after plunging about 7%—the deepest since 2011—and are now down approximately 10% from last week's record. The underlying cause is simple: massive profit-taking after a long year-long rally, so the rapid declines fueled each other.
At the same time, risk appetite improved as US-China tensions eased somewhat and there was hope the US government shutdown would soon end. The market is also awaiting US inflation data on Friday for the final clue before the Fed's long-awaited interest rate cut next week. Looking ahead, silver's direction will be key to the US dollar, US bond yields, silver ETF flows, and news on industrial demand (solar panels and electronics).
The price of silver at the time of this analysis was released was $48,738.
- Buy if the price moves within $49,038.
- Sell if the price moves within $48,438.
Resistance 2: $49,638.
Resistance 1: $49,338.
Support 1: $48,138.
Support 2: $47,838.
Disclaimer:
This article is analytical in nature and is not a definitive reference. Please consider fundamental and technical developments in trading before making any investment decisions.
Source: Newsmaker.id
