Silver: Metal Quotes Are Developing a “Bullish” Rally [13-01-2022]

Silver prices continue to climb moderately, updating local highs from January 5. The quotes are supported by not the strongest positions of the American currency, which is under pressure of uncertainty about the future policy of the US Fed.

In turn, the data on consumer inflation, which were published in the US the day before, did not bring any clarity, as they came out close to the forecasts. In addition, traders are again concerned about the widespread increase in the incidence of coronavirus infection, reasonably suggesting that this will leave its imprint on the plans of the world’s central banks. The number of hospitalizations with COVID-19 in the USA on Tuesday again posted a record rise since the start of the pandemic, with deaths also on the rise, hitting highs since October.

Investors are now focusing on statistics from the US on the dynamics of jobless claims. It is expected that the number of Initial Jobless Claims for the week ended January 7 will drop slightly to 200K against 207K a week earlier. The number of Continuing Jobless Claims may drop from 1.754M to 1.733M.

Silver Support and Resistance

Bollinger Bands in D1 chart demonstrate flat dynamics. The price range is slightly expanded from above, remaining spacious enough for the current activity level in the market. MACD indicator is growing keeping a rather strong buy signal (located above the signal line). The indicator is also trying to consolidate above the zero level. Stochastic does not contradict the general “bullish” picture of the rest of the indicators, but indicates the risks of overbought silver in the ultra-short term.

Resistance levels: 23.37, 23.60, 24.00, 24.37.

Support levels: 23.00, 22.70, 22.40, 22.00.

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Silver Trading Tips Today

BUYTo open long positions, one can rely on the breakout of 23.37 with the target at 24.00. Stop-loss – 23.00. Implementation time: 2-3 days.
SELLThe return of a “bearish” trend with the breakdown of 23.00 may become a signal for new sales with the target at 22.40. Stop-loss – 23.37.

MCX Money Tips Today
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