The silver market has been rather quiet the past week and traders may have to be patient throughout the holiday to witness stronger moves emerge. However, the relative quiet trading within the commodity may allow speculators an opportunity to pursue their technical perceptions with short-term trends and take advantage of small reversals.
Silver is traversing slightly below mid-term highs and this may attract more speculative trading within the commodity. A high of 27.270 approximately was attained on the 21st of December, but the rush higher proved short-lived as silver found itself trading near 25.750 only hours later. The commodity remains a speculative endeavor and volatility has the potential to spark quickly. While holiday traders may feel comfortable in what appear to be tranquil markets, they need to remain alert for sudden spikes which can develop.
The price of silver at the end of November was near 22.050 USD per ounce and its rise in value during December has been noteworthy. The past week of trading in the midst of the holiday season has remained steady and the value of silver has taken on a sustained appearance, but traders should not be fooled by this momentary consolidation as low trading volumes prevail.
Technical speculators who look at six-month charts of the commodity will have their interest piqued when they see the values of silver from early August until the third week of September. During this duration, the commodity traded roughly between 26.500 and 28.700 while achieving a high water mark near 29.940. However, late in September, silver fell below the 22.000 level.
Since the start of December, silver has proven to have found speculative buying and climbed back to within mid-term highs. The commodity will need an additional push higher and break current resistance levels in order to prove it has the capability of challenging December highs. However, rather light holiday trading volumes may make this a difficult task.
Short-term traders may want to pursue the potential for downward momentum to reignite in silver and target support levels below. The current price of silver, while attractive from a long-term perspective, may not have enough bullish momentum to sustain a trend upwards short term and may traverse downwards and challenge lower values near the 26.340 vicinity.
Silver Short-Term Outlook:
- Current Resistance: 26.550
- Current Support: 26.340
- High Target: 26.970
- Low Target: 25.970
