Silver – Silver Consolidates Awaiting Breakout

London silver also traded within a consolidation pattern last week, fluctuating between $56.6 and $60, closing at $57.59. The price volatility in July was similar to that of October last year. The 4-month moving average is currently at $66.3, and under normal circumstances, the price should tend to move towards this level.

Currently, silver is still trading within a downtrend, but it has shown clear signs of consolidation in recent weeks. The longer the consolidation period, the stronger the expected breakout. Resistance levels to watch are the 9-week moving average at $61.5 and the 50-week moving average at $65.6, while longer-term support is at the 100-week moving average at $46.3.

Last week, silver prices were pressured by the 25-day moving average, currently at $58.6. A clear break and hold above $59.8 at the close is needed for the trend to stabilize. The 50-day moving average is at $63.7, and the top of the triangle is around $65.9. If resistance continues, the price will further test the bottom of the triangle at $55.9. A break below this level could extend the decline to $54 and even $49.1.

Based on the two double-top patterns recently formed, an upward move could first challenge $59.4, $60.8, and $62.4. A break below $56.7 would trigger tests of $55.7, $54.3, and even $52.7. If the trend weakens further, the support level at $47.7 should be monitored.

The short-term chart shows the price currently fluctuating between $56.7 and $58.7. The key resistance level for August is $58.3. A clear break above this level would target the next resistance levels at $61.8 and $66.8, while support levels are at $53.4 and $51.7. The expected trading range for early this week is between $55.9 and $59.3. Closely monitor for a breakout from the triangle pattern to identify directional movements.

London Silver August Forecast Range:
Resistance: 58.3 – 60.1 – 61.8 – 64.3 – 66.8
Support: 55.8 – 53.4 – 51.7 – 49.8 – 45.8

London Silver August 3-7

Forecast Range:
Resistance: 58 – 58.7 – 59.3 – 60.4 – 61.4
Support: 56.9 – 55.9 – 55.3 – 54.4 – 52.8

London Silver August 3:
Forecast Early Range: 57.1 – 57.9
Resistance: 58.3 – 58.7 – 60.1 – 61.1

iShares Silver Trust silver holdings:

July 27 – 15,024.77 tons
July 28 – 15,024.77 tons
July 29 – 15,047.26 tons
July 30 – 15,047.26 tons
July 31 – 15,137.23 tons

Any questions? contact our professional analysis team