Categories: Forex News
| On
2023-10-30 1:57 PM

Silver Shines Bright, Eyes $25 Mark Amid Market Optimism

  • Silver gains momentum, reaching a one-week high around $23.20, but faces resistance at the $23.30-$23.40 confluence, marked by the 200-day SMA and 61.8% Fibonacci retracement.
  • Technical indicators show potential for upward movement. If silver surpasses key barriers, it could rise beyond $24.00, targeting the significant $25.00 mark.
  • Conversely, if the price drops below $23.00, support might be found at $22.85. A deeper decline could push silver towards the $22.00 mark and potentially as low as the $20.70-$20.65 range.
     
By Nonhlanhla

Silver, often termed the “white metal”, has been witnessing an uptrend for two days in a row, recently hitting a one-week peak near $23.20 (R435.05) during Monday’s Asian trading session. Despite this positive momentum, the metal is having a hard time surging past the $23.30-$23.40 (R437.38-R439.86) junction, a critical confluence zone consisting of the 200-day Simple Moving Average (SMA) and the 61.8% Fibonacci retracement from its downturn spanning August to October.

Just beyond this resistance lies another potential obstacle for silver bulls: the $23.70-$23.75 (R444.62-R445.50) zone. As per the daily chart’s technical pointers, they’ve been on the rise yet haven’t reached overbought territory. This suggests that if silver can breach the aforementioned resistance levels with conviction, it might embark on a significant upward journey. The immediate target post such a breakout would be the $24.00 (R450.48) landmark, extending possibly to the $24.20 (R454.30) threshold. A continued bullish momentum could even set sights on the ambitious $25.00 (R469.25) psychological level.

However, it’s not all rosy. Should silver retract beneath the $23.00 (R431.71) mark, it may discover some cushioning near the $22.85 (R429.18) zone, coinciding with the 50% Fibonacci level. Subsequent support levels to watch include the previous week’s lowest at approximately $22.55 (R423.16) and the 38.2% Fibonacci span around $22.35–$22.30 (R419.63–R418.69). If Silver can’t maintain these supports, it may tilt the scales towards the bears, potentially plunging further to the $22.00 (R413.14) mark or even to $21.70 (R407.54), the 23.6% Fibonacci point. A deeper selloff could endanger Silver’s stance, driving it to a March low of about $20.70–$20.65 (R388.60–R387.66).

For South African investors, the dynamic movement of silver in global markets is vital, especially given the country’s rich mining history and its role in precious metal markets. The currency conversion (given the exchange rate of 1 USD to 18.77 ZAR) provides a localized perspective on potential investment decisions.

Join Our Newsletter
Subscribe to our newsletter and stay updated.

Sponsored

Start trading with a free $30 bonus

Unleash your trading potential with XM—your gateway to the electric world of financial markets! Get a staggering $30 trading bonus right off the bat, with no deposit required. Dive into a sea of opportunities with access to over 1000 instruments on the most cutting-edge XM platforms. Trade with zest, at your own pace, anytime, anywhere. Don't wait, your trading journey begins now! Click here to ignite your trading spirit!

Nonhlanhla

Nonhlanhla P Dube is a senior news reporter. Nonhlanhla is a student of International Relations at the University of South Africa. She reports primarily on personal finance and economics. You can contact her on: Email: nonhlanhla@rateweb.co.za