FUNDAMENTAL OVERVIEW
Silver has been regaining some ground over the past few days, supported by a couple of optimistic developments on the US-Iran front. On Monday, prices jumped after Trump announced on his Truth Social account a five-day ceasefire aimed at paving the way for “a complete and total resolution of the hostilities”.
Late yesterday, silver got another boost after Israel’s Channel 12 reported that a month-long ceasefire could be announced while the US and Iran negotiate 15 key points. Traders are now waiting to see whether Iran accepts the plan. If it does, silver could extend its gains toward the 96.00 level. On the other hand, a rejection might put prices back under pressure, potentially dragging silver down toward the 50.00 handle.
SILVER TECHNICAL ANALYSIS – DAILY TIMEFRAME
On the daily chart, we can see that silver bounced on the first major upward trendline. The buyers stepped in with a defined risk below the trendline to position for a rally back into the 96.35 level. The sellers will want to see the price breaking below the trendline to increase the bearish bets into the next trendline.
SILVER TECHNICAL ANALYSIS – 4 HOUR TIMEFRAME
On the 4 hour chart, we have a downward trendline defining the bearish structure on this timeframe. From a risk management perspective, the sellers will have a better risk to reward setup around the trendline with a defined risk above it to position for a drop back into the upward trendline. The buyers, on the other hand, will look for a break higher to increase the bullish bets into the 96.35 level next.
SILVER TECHNICAL ANALYSIS – 1 HOUR TIMEFRAME
On the 1 hour chart, we have a minor upward trendline defining the bullish momentum on this timeframe. We can expect the buyers to lean on the trendline to keep pushing into new highs, while the sellers will look for a break to pile in for a drop back into the major upward trendline. The red lines define the average daily range for today.
UPCOMING CATALYSTS
Tomorrow we get the latest US Jobless Claims figures and a potential US-Iran meeting in Islamabad. The focus is now on US-Iran negotiations.
