The precious metal could be entering a general downtrend if it manages to break the support level at 25.68, where our 61.8% Fibonacci retracement is at. Silver is down 0.95% in the trading session and currently trades at $25.8 The Bollinger bands are contracting, which could slow down volatility a bit. The price trades closer to the lower band but not close enough to consider the price low. We would have to wait until the price reaches the support level or if it attempts to break out the $26.27 resistance level at the 50% Fibonacci retracement.
The moving averages continue moving downwards, and this is a downtrend signal. The spread between the lines is increasing, suggesting that the price will continue falling. The relative strength index is at 40% which will enable the price to continue moving down.
Our parabolic SAR indicator suggests that the price will pick up an uptrend; however, this is a lagging indicator that is taking into consideration the previous days where silver made 1.44% and 1.77% in two separate trading sessions.
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