Silver bounces off 200 hour MA on the last 2-tests

After reaching the high on Friday, the price started to rotate lower. That move day the price move below the 100 hour MA (blue line) and then the 38.2% of the move up from the March 2024 low (see hourly chart below). However, buyers came in against the 200-hour MA and bounced. The high price on Monday reached up to $29.01 before rotating back lower.

TVR INSTITUTE 

Today, the price once again fell below the 100-hour MA (blue line on the chart below), but found willing buyers at the 200-hour MA for the 2nd time this week (green line on chart below). Once again, buyers leaned and pushed the price higher.

So technically, the ceiling is clearly near $30. The technical support is near 200-hour MA (at $27.98).

Those technical levels gives traders the targets that need to be broken to either increase the bullish bias (on a break above $30), OR give the sellers some confirmation and confidence on a break below the rising 200-hour MA.

Be aware This article was written by Greg Michalowski at www.forexlive.com.

That’s right! Silver’s recent price action seems bullish based on the 200-hour moving average (MA) acting as support. Here’s a breakdown of what you described:

• 200-hour moving average (MA): This technical indicator represents the average closing price of silver over the past 200 hours. It’s a widely used tool to gauge long-term price trends.
• Support level: In this case, the 200-hour MA is acting as a support level for silver prices. This means that in the past two instances where the price dipped below the MA, it bounced back instead of continuing to fall.

This repeated bounce off the 200-hour MA suggests potential buying pressure around that price point. Traders might be viewing it as an attractive entry point, believing the price will rise again.

Here are some additional things to consider:

• Price ceiling: The article you might have read [Forexlive, April 16, 2024] mentioned $30 as a possible resistance level (ceiling) for silver. If the price breaks above $30, it could signal a stronger bullish trend.
• Confirmation: While two bounces are encouraging, more confirmation is needed for a definitive trend. Observing if the price continues to respect the 200-hour MA as support in future dips will be crucial.
• Other factors: Remember, technical indicators like moving averages are just one piece of the puzzle. Keep an eye on broader market conditions, economic news, and any other factors that might influence silver prices.