Silver maintains the uptrend

During the last week, the bears were putting a lot of pressure on silver. The most powerful sellers' attack was observed on Thursday, when the price decreased by almost 3% during the trading. However, the "bulls" brought the quotes back to the level of 24 quite quickly. Thus, the uptrend extending from the lows of May resisted. Now the price can move towards the 25 level.

There is no important economic statistics expected on Monday, so traders continue to analyze the events of the last week. For the first time in more than a year, the Fed did not tighten monetary policy further at its meeting on June 14. Nevertheless, the U.S. regulator said it may raise rates at least two more times this year. Such hawkish rhetoric has increased uncertainty in the precious metals market.

Now investors and traders are waiting for comments by certain Fed officials this week for additional signals on the future direction of monetary policy. The main focus will be on the speech of U.S. regulator chairman Jerome Powell in Congress on Wednesday and Thursday. Now the probability of a 0.25% rate hike at the meeting on July 26 exceeds 70%, but it depends on Powell's statement, and the numbers could change significantly in any direction.

Tomorrow's decision by the People's Bank of China on long-term interest rates may also have a strong influence on silver prices. Last week, the cost of short- and medium-term loans has already been reduced, and now the market expects a similar decision on the long-term loans. Lower rates will support the industry, which provides half of China's demand for silver.

The nearest target for silver in the current uptrend will be the previous local high at 24.5. Next, it is possible to move to the range of April supports 24.8-25 The RSI indicator is gradually approaching the overbought zone, but there is still enough space for silver price growth.

The following trading strategy option can be suggested:

Buy silver in the 24-24.1 range. Take profit 1 – 24.5. Take profit 2 – 24.8. Stop loss – 23.8.

Also, traders may use Trailing stop instead of a fixed Stop loss at their convenience.