Trading Silver? Here's What You Need To Know

Research Notes For 16 to 20 June > https://www.unum.capital/post/r1620june

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Here's a breakdown of the current price action: The 7-day trend is indicated as "Strong," while the 14-day trend is "Very Bullish."

Comparison: Both the short-term (7-day) and slightly longer short-term (14-day) trends indicate significant upward momentum ("Strong" and "Very Bullish" respectively). This suggests consistent and powerful buying pressure across these timeframes. The "Very Bullish" 14-day trend reinforces the "Strong" 7-day trend, indicating that the recent strength is part of a broader and accelerating upward movement.

Overall Trading Considerations:

• Consistent Bullish Momentum: Both short and slightly longer short-term trends are strongly bullish, supporting continued upward price action.

• Short-Term Caution: Despite the powerful buying pressure, the model advises patience. Traders should look for pullbacks to defined moving averages as optimal buying opportunities rather than entering at peak prices.

• Medium-Term Consolidation: The medium term reinforces the bullish sentiment but introduces the possibility of a pause or consolidation, which could offer further entry points.

• Long-Term Bullish Resumption: The long-term view is the most bullish, indicating a resumption of a strong upward trend, which suggests substantial upside potential.

In summary, for Silver (XAG/USD), the current view is decisively bullish across short, medium, and long terms. However, short-term traders should exercise caution and look for strategic pullbacks as buying opportunities to align with the dominant trend.

The model points to a general upward trend for the price of Silver (XAG/USD).

Lester Davids

Senior Investment Analyst: Unum Capital