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Tuesday, October 12, 2021

SILVER RETURNED BACK ABOVE $22.50 PER OUNCE

SILVER RETURNED BACK ABOVE $22.50 PER OUNCE

Silver OANDA:XAGUSD

Gold reversed hard on Friday, and this puts in a position to trade lower within the context of a downtrend. It is likely that the price follow-through on the reversal candle soon if it holds its bearish implications.

Silver posted the exact bearish reversal on Friday and did so at a solid trend-line of resistance coming down from June. As long as silver stays below the Friday high at $23.18 and within the confines of the channel dating back to late spring , then the outlook will remain firmly bearish .

Though the overall price structure remains of lower lows and lower highs below the downside resistance line taken from the high of June 01st and thus, the experts would consider the medium-term outlook to be negative. The consolidation near $22.86 suggests that the bulls have run out of strength after the rebound, and it is possible to decent chances for the bears to jump back into the action soon and perhaps push the action back down for another test of levels around $21.50. A decline below that level will put silver in position to trade towards a high created in 2019 at 19.28. It’s a significant drop from here, but not out of the question in the near term, as silver tends to move with momentum once it gets rolling.

Shifting attention to our daily oscillators, we see that the RSI rebounded from 30 but flattened slightly below 50, keeping the momentum negative still, while the MACD , although negative, lies above its trigger line.

In order to start examining the case of the latter, the experts would like to see a recovery back above $24.87. Silver will already be well above the downside resistance line and may encourage the bulls the drive the battle towards the high at $26.00 or the peak of June at $28.50.


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