Silver (XAG/USD) rallies back above $80, more incoming? – Technical Outlook
As speculation tones down, up sessions have been much more contained, which bodes well for a more stable price action ahead. Ranging between 2% and 3%, the daily rally in metals changes from the +10% ranges that almost became the new normal throughout January.
Futures Traders are now awaiting deliveries, and the COMEX has sent out notices. Concerns regarding the exchange’s low inventory levels are arising, but the Market hasn’t reacted to such news, so take that with a pinch of salt.
Overall, Metals are still in a rangebound trajectory since their correction, providing non-directional trading opportunities. However, directional traders will have to wait for a further breakout.
What may console Gold and Silver bulls is the heating tone regarding a military intervention in Iran, which would create a spike in Safe-Haven demand. Nevertheless, Gold would be more inclined to rally than the more volatile Silver, and with heavy positioning, any rally could see its potential capped.
Still, flight to quality may push Silver higher.
We will dive into a Silver multi-timeframe analysis to identify where the next breakout could occur and whether anything tilts the scales in favor of the Commodity. Let’s get right into it.
