Silver forecast for July 16, 2021: continued consolidation

Silver forecast for July 16, 2021: continued consolidation

Initially, silver tried to rally during Thursday’s trading, reaching the 50-day indicator, but then returned profit and formed a candle that was not the most attractive for buyers. The metal is likely to continue to consolidate as the market is short of catalysts at the moment. Silver remains sandwiched between the 50-day and 200-day EMA.

Buyers may view the 200-day moving average, the uptrend line from the ascending triangle and the $ 25 / troy ounce value as opportunities to hold and push the market higher. If the silver rate breaks down these levels, it will have a very negative impact on further dynamics and may send the precious metal to the $ 20 level.

If silver breaks through the 50-day moving average line, it will try to fill the gap by moving up to the $ 27.75 zone. Above is massive resistance that ranges from $ 28 to $ 30. A break above the $ 30 level could trigger a massive leap, but over time this scenario becomes less likely.

As Christopher Lewis points out, at this stage, you should also pay special attention to the fact that the US dollar is starting to gain momentum, and if it continues to strengthen, this could negatively affect the silver metal.

Silver rose Thursday after the publication of stronger-than-expected manufacturing activity data, which supported industrial metals. Copper also climbed higher. The dollar moved up, but yields on long-term bonds declined. Manufacturing in New York rose to record levels. The Labor Department reported a drop in US jobless claims, which should have boosted bond yields.

According to David Becker’s analysis, silver rallied higher, bouncing off support near the 10-day moving average. 50-day EMA resistance remains in place. The precious metal will find additional support near the uptrend line at $ 25.75. The short-term momentum has changed and turned positive. Medium-term momentum turned positive based on the signal from the MACD index.

Posted by Christopher Lewis & David Becker Jul 15, 2021 | Translation: Gold Reserve

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