Markets

Silver Looks to Correct Gains; Might Reach $31.50

During the past month, silver prices climbed steadily and spot-silver peaked at $34.30. However, the commodity then entered a moderate bearish correction, which took it down to $31.70 an ounce. Currently, silver has stabilized around the $32.70 level. Nevertheless, technical analysis now suggests that another bearish correction might be in place, with potential to take silver as low as $31.50 an ounce.

• The chart below is the spot-silver 4-hour chart by ForexYard.

• There is a very distinct bullish channel which was formed on January 30th, and ended around February 13th. During this time, silver climbed from $26.35 to the $30.85 level.

• Afterwards, silver entered an even sharper bullish channel, which only ended on February 20. By then, silver reached as high as the $34.30 level.

• Later on silver saw flat trading around the $33.50 level, and then began trading within a restricted range between the $31.70 and the $33.00 level.

• Currently, silver is trading near $32.80 an ounce, and appears to be on its way towards the bottom of the range.

• The MACD has recently completed a bearish cross, at a very high level. This indicates that the bearish move is likely to continue.

• Silver began to fall once the RSI fell below the 70-line. The RSI continues to point downwards, also signaling that the bearish move may be extended.

• The next support levels are located at the $32.00, $31.70 and $31.50 levels.

• The next resistance levels are at: $33.10, $33.75 and $34.25.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Other Topics

Commodities