Silver futures began the week with a gap-up opening and have demonstrated sensitivity to statements from U.S. President Donald Trump throughout the year. However, their primary response has been to financial events.
On Sunday, US President Donald Trump told advisers that an initial, more limited strike could be used to pressure Iran into agreeing to abandon its nuclear weapons capability.
Potential targets under consideration include facilities linked to Iran’s Islamic Revolutionary Guard Corps, nuclear infrastructure, and elements of its ballistic missile program.
But the economic data announced last week Favors declining expectations for further rate cuts this year, while on Saturday, the release of CFTC Silver net speculative positions looks evident enough for continuation of exhaustion this week.
Undoubtedly, a level of 24.0K indicates that such a position of CFTC silver net speculative positions is at the lowest point since the beginning of this year, indicating a sharp decline in overleveraged positions, which could trigger a sudden sell-off.
Technical Levels to watch
On the monthly chart, after opening this month at $84.300, it tested the month’s high at $92.015 and the month’s low at $63.900, trading at $86.860, showing extensive indecisiveness amid changing expectations over the interest rate cuts by the Fed this year.
I observed that the monthly candle for this month raises doubts about the reversal seen from the tested lows this month, as January has experienced the formation of a big exhaustive hammer after testing the record peak at $121.903.
In a weekly chart, , despite starting this week with a gap-up opening at $84.977, tested the week’s high at $87.187, are trading below the immediate resistance at $88.076, while the next significant resistance would be seen at $92.016.
I observed that if the silver futures are not able to find a breakout above the immediate resistance, they could experience a slide, and in that case, the immediate support at the 9 EMA ($80.054) could be tested, where a breakdown could push the futures to test the next support at the 20 EMA ($70.524).
In a daily chart, despite a gap-up opening, silver futures are trading in a narrow range, indicating a surge in indecisiveness, while the significant resistance is at $80.076, where an attempt to sustain above this could attract big bears to command the scenario.
Disclaimer: Readers are advised to take any position in silver at their own risk, as this analysis is based only on observations.