FUNDAMENTAL
OVERVIEW
The bullish momentum in silver has waned in recent days, likely due to some
profit-taking ahead of the Jackson Hole event. After the Treasury buyback announcement and Bessent’s “verbal” intervention
to suppress long-term yields, traders will be eager to see whether Fed Chair
Warsh leans against the easing in financial conditions.
If he doesn’t, silver will likely get another boost from further easing in
financial conditions and the dovish repricing in near-term interest rate expectations.
On the other hand, if he pushes back saying things like “recent easing in
financial conditions, if sustained, could complicate the process of returning
inflation to our target” or “if recent easing threatens progress
toward price stability, we will not hesitate to respond appropriately” and
so on, the market may interpret it as a signal for a potentially hawkish
September FOMC and put pressure on silver.
SILVER TECHNICAL
ANALYSIS – DAILY TIMEFRAME
On the daily chart, we have
an upward trendline defining the bullish momentum. The buyers will likely lean
on the trendline with a defined risk below it to keep pushing into new highs.
The sellers, on the other hand, will look for a break lower to pile in for a
drop into new lows.
SILVER TECHNICAL ANALYSIS –
4 HOUR TIMEFRAME
On the 4 hour chart, we
have the support zone around the 66.50 level adding confluence to the
trendline. Again, that’s where we can expect the buyers to step in with a
defined risk below the trendline to keep pushing into new highs. The sellers,
on the other hand, will look for a break lower to extend the drop into the
63.00 support next.
SILVER TECHNICAL ANALYSIS –
1 HOUR TIMEFRAME
On the 1 hour chart,
there’s not much we can add here as the buyers will have a better risk to
reward setup around the trendline, while the sellers will need to wait for a
break to extend the pullback into new lows. The red lines define the average daily range for today.
UPCOMING CATALYSTS
Today we get the US Jobless Claims figures. Tomorrow, we conclude the week
with Fed Chair Warsh’s speech at the Jackson Hole Symposium.
This article was written by Giuseppe Dellamotta at investinglive.com.