- La Plata is negable about 38.00 $ in Monday’s European session, pressured by the improvement of the feeling of global risk.
- A bullish cup pattern with handle in the 4 -hour graph was invalidated on Friday when the price broke below the 38.70 $ support.
- In a 4 -hour graph, the RSI remains close to overall levels in 32.00; The ADX rises to 36.86, pointing out a strong bearish impulse.
La Plata (XAG/USD) remains stable about $ 38.00 on Monday, struggling to recover impulse after last week’s technical break. Although prices remain stable in the day, the feeling of the broader market is weighing on metal. With global commercial optimism, particularly the commercial agreement between the US and the EU, investors are changing their approach to risk assets and moving away from traditional safe shelters, such as silver.
Slow action occurs after a failure in the bullish pattern in the 4 -hour graph. A cup pattern with handle had been forming throughout last week, typically an upward continuation sign, but that pattern broke on Friday. The price fell below the lower edge of the handle around $ 38,70, returning the most bassist short -term perspective.
After Friday’s fall of more than 2.0%, the price in cash has fallen below the exponential (EMA) mobile average of 50 periods, which is around $ 38,49, and is now testing the EMA of 100 periods about $ 38.03. Impulse indicators also support the downward pressure. The Relative Force Index (RSI) is currently 32.00, just above the overall territory, while the average directional index (ADX) has risen to 36.86, indicating a strong directional impulse that favors a greater fall. The immediate support is at the psychological level of 38.00, followed by the minimum of July 16 in 37.50 $, a key level to observe for a possible break or rebound.
However, by expanding the daily temporal frame, the biggest image remains bullish. La Plata is maintained within an ascending price channel that has been in force since April. The metal is also maintained above the 21 -day EMA at 37.78 and the 50 -day EMA in 36.45 $, which suggests that medium -term buyers have not yet surrendered. In the daily chart, the RSI remains healthy in 56.72, and the ADX is maintained in 23.24, so the bullish trend structure remains intact, for now.
In general, although the long -term upward configuration remains valid, cup form with invalidated handle in the lower temporal frame adds short -term caution. A sustained movement below $ 37.50 could pave the way for a deeper setback to the 36.40 $ -36.00 $ region, where the 50-day EMA and the lower limit of the ascending channel converge. On the other hand, a decisive recovery above $ 38.50 is necessary to restore the bullish impulse and open the door to a possible re-proceeding of the maximum of 14 years in $ 39.53.
SILVER – FREQUENT QUESTIONS
Silver is a highly negotiated precious metal among investors. Historically, it has been used as a value shelter and an exchange means. Although it is less popular than gold, operators can resort to silver to diversify their investment portfolio, for their intrinsic value or as a possible coverage during periods of high inflation. Investors can buy physical silver, in coins or bullion, or negotiate it through vehicles such as the funds quoted in the stock market, which follow their price in international markets.
Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can cause the price of silver to shoot due to its safe refuge status, although to a lesser extent than that of gold. As an asset without performance, silver tends to climb with lower interest rates. Its movements also depend on how the US dollar (USD) behaves, since the asset is quoted in dollars (XAG/USD). A strong dollar tends to maintain the price of silver at bay, while a weaker dollar probably drives rising prices. Other factors such as investment demand, mining – silver supply is much more abundant than gold – and recycling rates can also affect prices.
Silver is widely used in the industry, particularly in sectors such as electronics or solar energy, since it has one of the highest electrical conductivities of all metals, surpassing copper and gold. An increase in demand can increase prices, while a decrease tends to reduce them. The dynamics in US economies, China and India can also contribute to price fluctuations: for the US and particularly China, its large industrial sectors use silver in several processes; In India, the demand for consumers for precious metal for jewelry also plays a key role in pricing.
Silver prices tend to follow gold movements. When gold prices go up, silver typically follows the same path, since their status as shelter is similar. The gold/silver ratio, which shows the number of ounces of silver necessary to match the value of an ounce of gold, can help determine the relative valuation between both metals. Some investors may consider a high ratio as an indicator that silver is undervalued, or that gold is overvalued. On the contrary, a low ratio could suggest that gold is undervalued in relation to silver.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
