The precious metal is now considered to be on a downward trend as the key support level has been broken.
It looked like Silver would be able to make a comeback when it struggled to break the 50% Fibonacci retracement on an uptrend as this is usually a strong support level; however, the price was able to revert that and broke three retracements on a downtrend; 50%, 61.8%, and 24.8%.
The price has been able to recover some of those losses in the last two trading sessions, and it is currently at $25.23. We will likely see the beginning of an uptrend as the price is considered relatively low since it traded below the lower Bollinger band; the bands are opening up, which will bring higher volatility to the pair in the short term.
Silver is now aiming to reach the resistance level at $25.677, which is the 61.8% Fibonacci retracement. The relative strength index is at 37%, and this will allow the metal to continue climbing after finding support at $24.763.
We love to hear new ideas from traders and want to know what you think!
If you like this topic and want to suggest future topics that you find helpful, let us know by clicking the ‘submit your feedback’ button below.
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite.
Nothing contained in this website should be construed as investment advice. Any reference to an investment's past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit.