Silver performs a 'roller coaster', is this rebound just a flash in the pan?
Today, silver experienced a 'V-shaped' rebound, with prices rising from an intraday low of 75.58 to 87.08, an intraday increase of nearly 14.5%, marking a relatively strong performance in recent times.
From the 1-hour chart, the current price has surpassed the 7-hour and 25-hour moving averages, indicating a short-term bullish momentum. However, the 99-hour moving average is still turning downward, suggesting that medium-term pressure remains. Although trading volume has increased during the rebound, whether it can be sustained is in question.
Market sentiment is currently quite contradictory; on one hand, there is support from safe-haven demand, while on the other hand, it is influenced by expectations of Federal Reserve policies, causing prices to fluctuate. This up-and-down market presents both opportunities and risks for short-term traders. For a more cautious approach, it may be wise to wait for clearer trends before taking action.
In the short term, resistance can be watched in the 88-90 range, while support is seen at the 82-84 moving average levels. In the current volatile pattern, chasing highs or bottom fishing can easily lead to losses, so controlling position size and managing risk is key. $XAG
