Silver Price Wedged Against Support Ahead of Trump’s Liberation Day Address
Silver sits at key uptrend support ahead of Trump’s Liberation Day address, setting up a two-way trade. Will the bullish trend hold, or is a break looming?
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- Silver is testing uptrend support, with price action hinging on Wednesday’s White House event
- Bullish momentum has softened, but indicators suggest a shift rather than a full reversal
- Key levels: $34.87 resistance, $32.73 support, with the 50-day MA as the next downside target
Summary
Silver finds itself wedged up against uptrend support as we enter Liberation Day, providing a two-way setup depending on how risk appetite evolves to what U.S. President Donald Trump unveils in the White House rose garden after market close on Wednesday. While the risk of a squeeze is there considering how much bad news has been factored in, anyone contemplating long setups before the event needs to ensure risk management is front-and-centre of their thinking.
Silver Jammed Against Uptrend Support
Source: TradingView
You can see the abovementioned uptrend on the daily, reverting to support in late March after a third downside rejection. It was tested again on Tuesday and managed to hold, although silver has not strayed far from it so far in Asian trade on Wednesday. While the price action has been anything but bullish this week, until the uptrend is breached successfully, the broader bullish picture remains.
While bullish momentum has eased recently, with RSI (14) trending lower and MACD crossing over from above, both indicators remain in positive territory, suggesting there is a risk of a trend change rather than an outright bearish signal. The backdrop therefore favours a neutral bias, placing more emphasis on signals from the price action.
That emphasises the importance of uptrend at the centerpiece of these setups.
If the price were to hold above it, longs could be initiated with a stop beneath for protection. Friday’s high around $34.60 looms as initial target with a break of that level putting a retest of the multi-year peak of $34.87 on the radar.
Alternatively, if silver were to convincingly break the uptrend, shorts could be established beneath with a stop above for protection. $32.73 screens as a potential target with the 50-day moving average another after that.
-- Written by David Scutt
Follow David on Twitter @scutty
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