Silver price shows "double top"? Analyst: still to be verified, pay attention to the 30 mark support

foreign exchange trading platform- On Wednesday (May 30), spot silver was hit by the strengthening of the US dollar and US Treasury yields, closing below the key level of $32.00/ounce. FXStreet analyst Christian Borjon Valencia recently wrote an analysis of the technical trend of silver prices.

Valencia pointed out that silver price movements suggest that a "double top" may be coming, but it has yet to be verified.

Spot silver closed 0.41% lower at $31.95 an ounce on Wednesday, after touching an intraday low of $31.59 an ounce.

Silver prices fell on Wednesday as a small rise in US Treasury yields put downward pressure on the precious metal, Valencia wrote. As a result, silver prices retreated after hitting a six-day high of $32.29 an ounce.

Treasury yields rose for the second day in a row on Wednesday, with the 10-year yield rising 7.2 basis points to 4.614 percent and peaking at 4.638 percent.

The dollar index closed strong on Wednesday, climbing nearly 0.5 percent to 105.14.

Silver technical analysis

Valencia said that from a technical standpoint, silver is still moving to the upside, but according todaily chartThe price of silver appears to be forming a "double top" pattern. Momentum is supporting buyers, but buyers are losing momentum as the Relative Strength Index (RSI) is flat and close to overbought status.

Valencia points out that to confirm a "double top", the price of silver needs to fall below $30 an ounce. However, in the process, the price of silver needs to fall below the psychological level of $31.00 an ounce, then the May 24 high of $30.61 an ounce, and finally below the $30.00 an ounce mark.

(Daily chart of spot silver)

Valencia added that if silver buyers recover $32.00 an ounce and keep silver prices above that level, it could pave the way for a retest of the year-to-date high of $32.51 an ounce.

At 09:56 Beijing time, spot silver was quoted at $31.67 per ounce.