Trump says Iran war "close to over" amid hopes for more negotiations
On evaluating the movements of the silver futures on different time frame chart patterns, I anticipate that today’s steep slip, indicating a reactionary move to address of the U.S. President Donald Trump on Wednesday evening to the nation, as he said that the military will ramp up its operation against Iran in the next two to three weeks, reiterating the need to prevent Tehran from obtaining a nuclear weapon.
Undoubtedly, Trump’s address has extended indecisiveness in the markets, resulting in a steep decline in precious metals as President Trump said that Washington remained in negotiations with Iran, and repeated his threat of attacking Iran’s electricity infrastructure if Tehran did not accept a deal.
I observed that soon after President Trump concluded his address, Brent crude oil futures reacted immediately with a surge of more than 5%, currently trading with a gain of approximately 6.68% gains amid worries of trade disruptions, leading to stagnant global growth and elevated inflation worries.
However, Friday being a holiday for ‘Good Friday’, a short week could trigger a selling spree in precious metals as President Trump changes his stance, especially on weekends.
During his address to the nation, President Trump didn’t mention any deadline for further action and the details of the deal, if any, in progress with Iran, and he says he is considering the request received from Iran for de-escalation, while Iranian authorities deny any such request.
Meanwhile, important economic data is due for announcement – such as Initial Jobless Claims, Trade Balance (Feb.), U.S. Baker Hughes Oil Rig Count, U.S. Baker Hughes Total Rig Count, and Natural Gas Storage today.
Technical Levels to Watch
In a weekly chart, silver futures, after opening this week at $69.350, tested a week’s high at $76.265, week’s low at $67.700, and are trading at $70.330, forming a bearish hammer.
Undoubtedly, if silver futures experience a breakdown below the immediate support at $65.577, the next support at $63.726 could be tested.
In a daily chart, silver futures, after starting the day at $75.450, tested the day’s high at $75.955, and the day’s low at $69.662, are trading at $70.415, indicating extreme weakness as they have found a breakdown below the significant resistance at the 100 EMA ($71.438).
I observe that if silver futures sustain the current levels in today’s session up to this week’s closing, selling pressure could extend next week.
Disclaimer: Readers are advised to take any position in silver futures at their own risk, as this analysis is based only on observations.