According to an SEC report, the Saudi Central Bank entered the precious metals market in Q2 by purchasing 932,000 shares of silver ETFs worth $30.57 million, including 203,700 shares of Global X Silver Miners valued at $9.8 million. Although the volume is not significant compared to the global market, the focus on silver instead of gold, at a 1:94 price ratio, and the choice of ETFs rather than physical assets highlights a more volatile investment approach.
Speculative positioning remains positive. Data from the U.S. Commodity Futures Trading Commission (CFTC) show long positions at 44,700, compared to an average of 25,000. Silver futures trading volume on CME Group increased last week, hitting a monthly high of 109,000 contracts on August 26, well above the median 68,000. Options activity, used for both hedging and speculation, also stays elevated above 13,000 contracts, versus an average of 9,000.
Support and Resistance Levels
On the daily chart, the instrument trades below the resistance line of an upward channel with dynamic boundaries of 41.00–37.00.
Technical indicators confirm a buy signal: the EMA bands on the Alligator indicator are pointing upward, while the AO histogram forms corrective bars in the buying zone.
- Resistance levels: 39.20, 41.00
- Support levels: 37.50, 35.40
Trading Scenarios
Long positions may be opened after a breakout and consolidation above 39.20 with a target of 41.00. Stop-loss at 38.50. Horizon: 7 days or more.
Short positions may be opened after a decline and consolidation below 37.50 with a target of 35.40. Stop-loss at 38.50.
Scenario
- Timeframe: Weekly
- Recommendation: BUY STOP
- Entry Point: 39.20
- Take Profit: 41.00
- Stop Loss: 38.50
- Key Levels: 35.40, 37.50, 39.20, 41.00
Alternative Scenario
- Recommendation: SELL STOP
- Entry Point: 37.50
- Take Profit: 35.40
- Stop Loss: 38.50
- Key Levels: 35.40, 37.50, 39.20, 41.00