Silver consolidates above a key support ahead of ceasefire deadline; eyes on US-Iran talks
FUNDAMENTAL OVERVIEW
Silver rallied on Friday following a barrage of positive news on the US-Iran front. The sentiment turned bullish on news of a potential deal after Iran announced it would reopen the Strait of Hormuz.
However, that upward momentum reversed heading into the weekend. Prices cooled after President Trump clarified that the US would maintain its blockade of the Strait until a deal was signed. This prompted traders to hedge their positions into the weekend against a possible escalation, which proved prescient as Iran reclosed the Strait in retaliation to the US blockade.
The renewed US-Iran tensions resulted in a negative gap when markets reopened yesterday. Despite the positive expectations, the uncertainty is capping silver's upside.
The price action continues to be driven almost entirely by US-Iran headlines, which is unlikely to change until an official resolution is reached.
The downside for now remains limited by positive expectations for a deal. An official resolution would likely trigger a rally towards the 90.00 handle. If the ceasefire doesn’t get extended though and the conflict resumes, silver prices could quickly fall back into the 60.00 level.
SILVER TECHNICAL ANALYSIS – DAILY TIMEFRAME
On the daily chart, we can see that silver is consolidating above the 78.00 support. The buyers will likely continue to step in there with a defined risk below the support to keep pushing into the 96.30 level next. The sellers, on the other hand, will look for a break lower to pile in for a drop into the major trendline around the 70.00 handle.
SILVER TECHNICAL ANALYSIS – 4 HOUR TIMEFRAME
On the 4 hour chart, we have an upward trendline adding confluence to the 78.00 support. This should technically strengthen this support zone and give the buyers more conviction to position for new highs with limited risk below the trendline. If the price were to break lower, the sellers will likely extend the pullback into the 72.50 level next.
SILVER TECHNICAL ANALYSIS – 1 HOUR TIMEFRAME
On the 1 hour chart, there’s not much we can add here as the buyers should step in around these levels with a defined risk below the trendline, while the sellers will wait for a break to open the door for new lows. The red lines define the average daily range for today.
UPCOMING CATALYSTS
Today we have the US Retail Sales. Tomorrow, we should have the US-Iran talks in Islamabad. On Thursday, we get the latest US Jobless Claims figures and the US PMIs. The focus remains on US-Iran headlines ahead of the ceasefire deadline tomorrow at midnight.
This article was written by Giuseppe Dellamotta at investinglive.com.提供 MainLink：Investinglive RSS Breaking News Feed
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