Forex Analyst: Silver is technically bearish, with the first support level at 28.28

Forex Platform- On Wednesday (June 26), spot silver suffered another blow and is currently falling to around $28.70 an ounce. FXStreet analyst Christian Borjon Valencia recently wrote an analysis of the technical outlook for silver prices.

Valencia wrote that the silver price continued its decline on Wednesday, as long as it remains below $29.00/oz, it remains bearish. From a technical perspective, the bearish swallowing pattern and the relative strength index (RSI) formed last week suggest that the silver price will fall further.

Forex Analyst: Silver is technically bearish, with the first support level at 28.28 (Figure 1).

Analysts pointed out that with the strengthening of the US dollar and US Treasury yields, silver prices are under downward pressure.

Spot silver closed 0.51% lower at $28.75 an ounce on Wednesday, with an intraday low of $28.56 an ounce.

The dollar index, which tracks the greenback against six major currencies, closed up 0.41% at 106.06 on Wednesday. The yield on the 10-year Treasury note rose 5.5 basis points to 4.304% on Wednesday.

Silver technical analysis

Valencia pointed out that last week, silver prices formed a "bearish devouring" chart pattern, indicating the potential for further downside. Momentum, as measured by the bearish relative strength index (RSI), supported sellers, indicating that silver could continue its decline.

Valencia said the first support level for silver prices is the June 10, 2021 high of $28.28 an ounce. A break below this level would target the psychological level of $28.00 an ounce, followed by a volatile low of $27.01 an ounce on May 8.

If silver prices fall below these levels, sellers will target a 100-day moving average of $26.82 per ounce.

Forex Analyst: Silver is technically bearish, with the first support level at 28.28 (Figure 2).

(Daily chart of spot silver)

Valencia added that if silver resumes its uptrend, the next resistance level will be the 50-day moving average (DMA) at $29.17/oz.

If silver overcomes the above moving average resistance, the target will be the June 7 high of $31.54 an ounce. A break above this level would put bulls looking towards $32.00 an ounce before challenging the year-to-date high of $32.51 an ounce.

At 09:22 Beijing time, spot silver was quoted at $28.76/ounce. That's it for foreign exchange analysts' analysis of silver's technical bearishness.Forex PlatformThere is more about foreign exchange, if you are interested, you can continue to follow.

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Disclaimer: The content of this article does not represent the views of the Institute of Foreign Exchange. The content is for reference only and does not constitute investment advice. Investors operate accordingly at their own risk.