Huitong, May 16 / PRNewswire-FirstCall-Asianet /-- Silver prices rose after the US CPI reported weakness in April, market analyst Christian Borjon Valencia said. Silver must exceed $29.79 and $30.00 for the bullish momentum to continue. If it falls below $29.00, it will fall to the key support levels of $28.75 and $28.00.
Announced by the United StatesFreedailyspinsThe lower-than-expected CPI in April led to a sharp fall in Treasury yields, which was a plus for silver, which continued to rise. Spot silver closed up 3.69% at $29.64 an ounce on Tuesday.
Market analyst Christian Borjon Valencia pointed out that the silver price broke through the psychological barrier of $29.00 and $29.50, but still failed to break the year-to-date high of $29.79. This brings the double tops closer, but the momentum is good for buyers, as depicted by the relative strength index (RSI).
Silver must regain its year-to-date highs and psychological levels of $30 before it can continue to rise. Breaking through these levels will further look at the February 2013 high of $32.15, followed by the October 2012 high of $35.40.
On the other hand, sellers need to pull the price of silver below $29.00. In this case, silver could fall back to a high of $28.75 on May 18, 2021, followed by support of $28.00. If it falls below $28, it will fall further to the key support of $27.
Spot silver daily chart
8: 00 May 16, Beijing timeFreedailyspins: 42, spot silver is 29.68 US dollars / ounce
