Silver breaks below 22.86 confirming an impending low
traded lower Thursday and Friday, breaking below the 22.86 support zone (now converted to resistance), signaling an impending lower low on the daily chart. Additionally, the white metal has been trading below short-term bearish resistance since June 11th, so we would rate the near-term outlook as negative.
If the bears are ready to stay in the driver’s seat, we could see them soon target the 9:65 p.m. low of September 24, 2020. A critical break below this barrier could have greater bearish impact and potentially pave the way towards the 19.48 area marked by the inside swing high on July 15, 2020. The next area to consider as resistance could be at 18.42, marked by the July 10th 2020 low and the inside swing high of June 1st, 2020.
If we look at our daily oscillators, we see that the RSI has moved down and is not very close to its 30 line, while the MACD is running below both its zero and trigger lines and is also pointing down. Both indicators recognize a downward speed and support the notion of a further decline in this precious metal.
To get out of the bullish fall, we would like to see a rebound above the 24.87 barrier marked by the September 3rd high. This will confirm an impending higher high while the price will already be above the aforementioned downward line. The bulls could then be encouraged to take action towards the 25.97 mark or the 26.75 hurdle marked by the August 4th and July 6th highs, respectively, the break of which is a widening towards the 28th .22 could allow. This area served as the cap for silver between May 17th and June 10th.
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