Silver prices fell below the 29 mark, foreign exchange platform analysts: the next target is the 28 mark
(Spot silver one-hour chart)
Spot silver closed down 1.2% on Wednesday at $28.88 an ounce.He wrote that on Wednesday, due toUnited StatesYields on US Treasuries rose after the five-year auction and silver failed to extend its gains, falling more than 1 per cent. The silver price finally closed below $29.00 an ounce, opening the door for further declines.
How should we proceed after the collapse of silver prices?
He pointed out that from a technical perspective, the price of silver has fallen below $29.00/oz, and it is likely to continue the decline and fall below the June 26 low of $28.57/oz. The momentum indicator shows that sellers are dominant as the relative strength index (RSI) accelerates downward, remains bearish, and has enough room before turning oversold.
The path of least resistance for silver, he said, is down. The first support level for silver will be the 100-day moving average (DMA) at $28.43 an ounce. Once effectively below this level, the next target for silver will be the psychological zone of $28.00 an ounce before falling back to the latest cycle low of $26.02 an ounce (May 2 low).
Conversely, silver could test higher prices if it rallies past the $29.00/oz mark, he added. The first resistance level will be the July 22 high of $29.42/oz.
Once the silver price breaks through the July 22 high, the next target will be the July 19 high of $29.83/oz. If this level is conquered, the silver price is expected to rise further, and the target is looking at the $30.00/oz mark.
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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.