Silver Strategy - Funds Shift to Risk Assets, Precious Metals Temporarily Weaken

Fundamental Analysis: 

With both the House and Senate likely to be Republican-majority, Trump's policies may find smoother passage, enabling his "strong America" agenda. This has driven the U.S. dollar upward, adding to market optimism about an economy shielded by such policies. Consequently, safe-haven assets like precious metals have weakened. Additionally, last Friday, U.S. consumer confidence showed signs of recovery. Coupled with previous economic and employment data, the market anticipates a "soft landing" or "no landing" scenario, prompting funds to flow into risk assets and diminishing the appeal of precious metals.

Technical Analysis: 

On the hourly chart, silver saw a strong rebound after a sharp decline, but the subsequent momentum has weakened, and selling pressure has intensified, with moving averages signaling a bearish crossover. This indicates an overall weak trend. However, with a low-level bullish crossover on the KD indicator, a short-term rebound is possible. Nonetheless, in a bearish trend, avoid taking long positions on rebounds. Instead, consider a light short position at the resistance level of 31.45, with a target of 30.95 and a stop loss at 31.90.

Trading Strategy: 

Consider a light short position at 31.45 resistance, targeting 30.95 with a stop loss at 31.90.

Support Level: 30.95 Resistance Level: 31.45

Disclaimer: The above content is for reference only and does not represent the platform’s stance. Individuals are encouraged to adhere to their strategy and manage risks accordingly.