Spot Silver Prices Surge Over 4%, Closing Above $31.50 per Ounce
Spot silver prices experienced a significant surge of more than 4%, closing at $31.60 per ounce on Monday. This strong upward movement was highlighted in FXStreet analyst Christian Borjon Valencia's latest article on the technical outlook for silver prices.
According to Valencia, silver prices rebounded sharply from a low of $30.25/oz amid thin liquidity conditions. The technical indicators for silver suggest a robust upward bias, with the Relative Strength Index (RSI) showing bullish tendencies without yet reaching overbought levels.
On Monday, spot silver closed up 4.12% at $31.60/oz, peaking at $31.85/oz during the session. Valencia notes that the daily chart demonstrates an upward bias for silver, although it has not yet reached its year-to-date high of $32.51 per ounce. The momentum remains favorable for buyers, with the RSI continuing to indicate bullish strength.
Valencia identifies key levels to watch:
- Resistance Levels:
- The first resistance level is the psychological barrier at $32.00/oz.
- Beyond that, the next resistance is at the year-to-date high of $32.51/oz.
- Further resistance is anticipated at the $33.00/oz round figure.
- Support Levels:
- The initial support level is at $31.00/oz.
- If silver falls below this level, the next support is at the psychological level of $30.50/oz.
- Further support is found at the May 23 low of $30.07/oz.
Valencia's analysis suggests that as long as silver maintains its upward momentum and stays above key support levels, it remains positioned for further gains. However, monitoring the resistance and support levels will be crucial for traders to gauge the market's direction and potential price movements.
