COVID-19 is breaking records in 2021 with Britain hitting a dramatic 100 000 deaths milestone, while the active cases Worldwide is already 100 million.
The debates of the new stimulus plan brought in a lesser volatility to the markets. The number and the date of stimulus injection still remains uncertain.
Whereas Covid-19 cases rose hitting new records, the Volatility index also jumped today, all eyes are on the FOMC meetings and the Fed rate decision which is expected to remain unchanged.
Silver is one of the assets to watch, as the metal has formed a symmetrical triangle and could follow along the uptrend channel. The FOMC Statement will be decisive on the price action of XAG/USD, though there are key points to consider.
As seen on the chart below, the price uses Pitchforks levels as supports and resistances, and currently Silver is testing the 0.382 as support. Bears are pushing the price lower, while bulls do not have enough power to push the price back upwards.
Moving averages, MA100 and MA200 as well as EMA50 show a great resistance and might withhold the uptrend continuation of XAG/USD. As seen on the chart MA200 is about to overtake MA200 and if that happens, Silver may continue to retrace further down to $24.20 levels.
On an hourly chart, silver has formed a symmetrical triangle; breakout of each edges of the triangle will signal the short-term trend continuation.
If the price breaks below the lower edge of the triangle, I’m expecting a drop down to $25.08 and $24.55. If breaks above the upper edge of the triangle, the price will jump towards $26.40.
If Silver holds above $24.55, then there is another possible formation to watch, see the chart below.
This long term Silver sentiment looks bullish, if $24.55 support is not penetrated and the price doesn’t close below this support. In that case, Silver may once again form an Inverted Head and Shoulders pattern and proceed towards $27.65 levels.
Some investors worry about the deduction of the stimulus bill and expect that the “buy-everything” year, whereas due to paychecks volumes in markets jumped, will end soon and the bubble will explode. The US Dollar Index is still above the 90.400 support zone and remains strong, any positive outlook stated by the Fed will boost the US Dollar index, hence bring down the Silver and Gold prices.