Market News & Analysis

Silver: A potential bullish sneak attack on the horizon

Medium-term technical outlook on Silver (futures)

click to enlarge charts

Intermediate support: 16.60

Pivot (key support): 16.10

Resistances: 18.20 & 19.75

Next support: 15.00

Directional Bias (1 to 3 weeks)

Bullish bias in any dips above 16.10 key pivotal support and a break above 17.18 may trigger a bullish breakout to target the next intermediate resistance at 18.20 in the first step.

On the other hand, a daily close below 16.10 is likely to jeopardise the major uptrend phase in since 14 Nov 2018 low of 13.86 for a deeper corrective decline towards 15.00 support (the former resistance of a major “Descending Wedge” from Jul 2016 high & medium-term congestion area of 06 Jun/03 Jul 2019).

Key elements

  • Since its 04 Sep 2019 swing high of 19.75, Silver has staged a corrective decline of 15.80% and interestingly, price action coupled with momentum analysis do not strongly support the start of an impulsive down move sequence at this juncture.
  • The decline from 04 Sep 2019 high has evolved into a bullish “Descending Wedge” range configuration where the magnitude of the “lower lows” is lesser than the magnitude of the “lower highs”. The “Descending Wedge” resistance stands at 17.18.
  • The 16.60 current swing low area of the “Descending Wedge” confluences closely with a Fibonacci retracement/expansion cluster which suggests a potential bullish inflection point.
  • The daily RSI oscillator has traced a bullish divergence signal at its oversold regional and broke above a corresponding descending resistance. These observations suggest that the recent downside momentum has started to abate which supports a potential medium-term revival in upside momentum.
  • Relative strength analysis via the ratio chart of Silver/Gold advocates a potential future outperformance of Silver against Gold.

Charts are from eSignal


This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit for the complete Risk Disclosure Statement.

Important Notice:

Cryptocurrencies are not legal tender currency and trading of derivatives on Cryptocurrencies are currently not covered under any regulatory regime in Singapore. Consequently, investors should be aware they do not have protection under the Securities and Futures Act (Cap. 289). Please ensure that you are fully aware of the risks.