Chart of the day

Where do we stand fundamentally?

The current spot price of silver (XAGUSD) as of September 25, 2024, is hovering around $31.80 per ounce, showing a slight decline of 1.1%. This comes amid mixed market signals, including a weakening U.S. dollar and fluctuating industrial demand for silver, which is tied to both its use in electronics and automotive industries. A key focus is whether silver can hold above the $31.65 support level, with risk-on-market sentiment impacting prices. Meanwhile, China's recent economic stimulus measures have had a positive effect on metals markets, offering a potential upside for silver in the near term

XAGUSD is testing a strong upside resistance of 31.80. A break above 31.80 is needed for a run to 34.50 and higher. Invalidation of this immediate upside extension could come upon a break below 30.15.

An invalidation level of a fifth-wave long-term extension higher and a bullish cycle is 28.50. As said this extension higher could lead to a 34.60 target in the medium-term to long-term if the XAGUSD breaks above 31.80.

_{Try a long trade entry with a narrow stop loss below 31 to target 34.80 and higher.}