On Thursday, the US yields spiked sharply, sending the 10-year yield 10% higher toward the 1.5% level, undermining precious metals. 

Silver dropped yesterday, although gold posted a much more significant drop. Today, the situation is reversed = gold is trading flat, while silver is plunging nearly 2% at the time of writing.

This week’s bounce in silver stopped near 24 USD, where previous lows are located. It was an apparent technical pull-back in the ongoing bearish trend. It was sold-off aggressively. 

The weekly chart shows the last crucial support for silver – at September 2020 lows near 21.65 USD. Large stop-losses could be hit if that level is taken out to the downside, pushing silver further lower. Additionally, the long-term uptrend would be over. 

In that case, we could see a decline toward pre covid highs near 18.50 USD—a drop of circa 15%.

Alternatively, if bulls defend the mentioned support, silver needs to rise above 24 USD for the immediate bearish danger to perish. Short and medium-term trends seem bearish for now. Any rallies are expected to be sold, as we have seen this week already.

Source: https://www.axiory.com/technical-analysis/silver-slides-again-sentiment-remains-negative

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About Author

Peter comes from a background in corporate finance which began in 2013 when he completed the Corporate Finance Program at the University of Economics in Bratislava. He’s been actively involved in the market sector since 2008 and got his hands-on experience in trading in 2011. His experience in finance and trading continues not only as a market analyst at Axiory Intelligence but also through his studies to obtain a degree in Capital Markets. The study is in line with MIFID II regulations and is under the supervision of the European Regulator ESMA, which strongly emphasizes ethics and morale in investing and working with a client.

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