The silver futures market continues to exhibit strong upward momentum amid rising volatility. Recent trading activity shows prices approaching significant resistance levels, indicating a bullish trend. As of now, the market is holding above key pivot points, reinforcing the prevailing bullish sentiment.
Current Market Analysis
Silver prices have recently surged, with notable resistance expected near $98.51 and $99.94. This upward movement is supported by a consistent buying effort, particularly during price pullbacks.
Market Dynamics
- Daily VC PMI Pivot: Currently positioned around $94.60, this level has provided essential support.
- Short-Term Resistance: Prices are expected to encounter resistance between $99.50 and $101.25.
- Upcoming Inflection Points: The market is likely to experience significant movements around January 27-30.
As long as silver prices remain above the daily pivot, the expectation leans towards a bullish resolution rather than a complete reversion to mean prices.
Geometric Insights
Analysis utilizing square of 9 geometry suggests that the resistance zone clustered between $99.50 and $101.25 is critical. A sustained close above this range may signal continued upward movement, transforming previous resistance levels into support.
Support Levels
- First Support Level: Daily Buy 1 is seen at $92.45.
- Second Support Level: Daily Buy 2 stands at $88.54.
- Critical Mean-Reversion Level: The Weekly VC PMI is at $87.40.
Should silver prices drop below the daily pivot, a shift in momentum could occur, increasing the chance of revisiting these lower support levels.
Market Indicators
The MACD structure indicates that energy is currently building rather than being released. This condition often precedes a significant upward movement, especially when aligning with both time-cycle windows and geometric resistance.
Traders are advised to closely observe market movements within the $99.50 to $101.25 range, as this will provide confirmation of whether the bullish trend will continue or if a mean reversion will take place.
Note: This article serves as educational content and should not be considered as financial advice. Always consult with a certified financial professional for guidance on trading futures and options.
