Silver Tech update: Silver sell-off approaches support confluence zone

Technical analysis of silver

  • The long-term uptrend is still intact, although selling increased last week.
  • 23.20 is proving to be an important confluence of supports, with the RSI approaching oversold territory.
  • The analysis in this article uses chart patterns and key support and resistance levels. For more information, see our comprehensive educational library.

The long-term upward trend remains intact despite the recent sales

Silver prices began a significant sell-off at the end of last week, which continued this week, albeit at a much slower pace. Silver prices largely followed the gold price, but the recent decline in both commodities meant that the silver price underperformed it. The decline in silver prices last week was 4.8%, while the decline in gold was only 1.36%, possibly underlining the yellow metal’s greater attractiveness as a safe haven.

The weekly chart below shows the first signs of indecision at the 50% Fibonacci retracement of the major 2021-2022 pullback at 23.83. Price action remains within the ascending pitchfork that has largely contained the upside. Further downside draws attention to 23.20 as the intersection between the bottom of the pitchfork and a proven pivot point from October last year.

Silver weekly chart

Source: TradingView

The daily chart provides further details on the recent downward movement and shows a slowdown in the bearish momentum. Once again, 23.20 is an important downside level and should the price move slow down and reverse upwards, 24.85 proves to be an important resistance level. As the RSI has not yet reached the oversold zone, we could expect further selling.

Silver daily chart

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