Silver Weekly outlook – 12 March – 16 March
The spot silver market saw an ‘up and down’ week last week, with price initially falling lower and reversing later in the week with a push back higher. The weekly timeframe closed as a bullish pin bar suggesting traders may expect to see further bullish momentum in the coming week.
Similar to Gold, Silver’s initial push lower was stopped by a rejection of a key psychological and technical level. As you can see in the chart below, early trading saw a test and rejection of the area at 33.00 strengthening its relevance in the market.
The daily charts confirmed the weekly charts price action, with Friday closing as a bullish pin bar. Similar to the weekly charts, Fridays candle showed a clear rejection of 33.00. However, traders need to be aware of resistance at 34.50 which may hamper any move higher (at least for the short term).
Another possible stumbling block which may prevent the bulls pushing the metal higher is the falling trend line that can be seen on the weekly timeframe. Two week’s ago, the price did break above the trend line, however was unable to hold its break resulting in a close below. As you can see, last week’s candle closed just below the trend line confirming its strength.
Trading the metal may prove a difficult task in the near term. With the bullish price patterns being made less significant by strong resistance, traders may be advised to wait for further confirmation before buying the metal.
We’ll be looking at the lower timeframes for possible long entries as the week progresses taking into consideration the strong resistance levels.