Silver Loses Steam

With the current events making an impact on every tradable asset, silver has felt the heat as well. It is currently trading at levels last seen in 2009.

The important break structure at $14 was broken with force on 16th March. Ever since, silver has been trying to provoke some relief rally.

A break higher above the $14 handle is required to consider a bottom is in place. Otherwise, silver is under risk for further slides towards $10.20/30.

The downfall of XAGUSD is owed to the lower demand by the manufacturing industries, which is likely to keep the pressure in check.

In the below chart, we can see that prices have fallen into a downward channel. The resistance of the channel comes to $12.25, where a break carries the potential for a run towards $13 handle.


The lower blue trendline is forming a base at $11.55. If it holds, we can anticipate a move to the higher side; potentially testing the $13 handle.

The two blue trendlines also form a channel tilted slightly to the downside.

A break below the base support of the bearishly biased channel (blue) could lead to a further drop towards the $11.00 handle.

About the Author
“John Benjamin Resident Analyst at Orbex. John has over 8 years of experience specializing in the currency markets, tracking the macroeconomic and geopolitical developments shaping the financial markets. John applies a mix of fundamental and technical analysis and has a special interest in inter-market analysis and global politics.” [space height="10"] At Orbex, we are dedicated to serving our clients responsibly with the latest innovations in forex tools and resources to assist you in trading. Please Director at Visit our site for more details.

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