The bounce here sees silver trade up by over 3% today to now above $81. It’s a solid recovery from the lows on Tuesday, which saw a dip just under the $72 level at the time. The price swings this week are not as volatile as what we’ve seen in late January to early February but they are still worth taking note of.
For now, US-Iran tensions continue to help with buying appetite but traders are still wary of the volatility bouts from earlier this month. That especially as both gold and silver looks to be consolidating a fair bit. And just as a reminder, silver was still hit with a sudden volatility bout last week which saw price fall from $82 to $75 in quick succession.
Here’s a look at the near-term chart for now:
The latest rise today comes as dip buyers are shaking off resistance from the 200-hour moving average (blue line). That keeps the near-term bias more bullish for now as buyers try to establish a platform to build on for the next upside leg. But as mentioned, it’s still early days though and the bigger technical picture suggests that there is more work to be done.
The past one week has been a bit of a consolidative mood to it, since the modest drop on 12 February. That has seen silver keep under $80 mostly before the recovery jump today.
Still, the potential developing pattern of lower highs, lower lows is very much still in play. It isn’t as clear cut as what it felt last week but it is still something to be mindful about.
As such, dip buyers will have to break this hold in order to really convince of a stronger rebound for silver from hereon. The key level in this instance is that first threshold around $86.32. If that gives way, it will give more assurance that precious metals might be ready to gear up for another run to the upside again.
On the month itself, silver is still down by a little over 5% as of today
