Silver Attempts a Pre-Fed BreakoutSilver has been dead money since the summer as the U.S. dollar ripped higher. But now it’s attempting a breakout – despite next week’s looming Federal Reserve meeting.
Notice how the iShares Silver Trust made a higher low on January 6 versus its nadir the previous month.
Next, consider the level above which it made the higher low: $19.80. That price marked a false breakdown on September 29, which turned into a double bottom on December 15. It’s also near the bottom of the longer-term range since the white metal’s face-melting rally in mid-2020 .
Third, Monday’s bounce has established SLV above December’s peak of $21.59. So we already had a higher low , and now we have a higher high .
The move also represents a breakout above the 50- and 100-day simple moving averages (SMAs).
The shorter-term exponential moving averages (EMAs) have lined up bullishly as well, with the 8-day EMA rising above the 21-day EMA last week.
Finally, Bollinger Band has squeezed down to the narrower end of its long-term range. In isolation, this means little. This lack of trend could make it easier for prices to start moving if the technical events cited above play out.
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