Silver Price Bearish Trend Technical Analysis

Silver Price

Silver Price Bearish Trend

Based on technical analysis, it seems that the silver market is currently experiencing a bearish trend, with the price dropping to a three-week low and exhibiting a downward trajectory. The failure to breach the 200-day Simple Moving Average (SMA) and the subsequent drop below the $22.80-$22.75 horizontal support indicate a bearish sentiment in the market. 

Key Support and Resistance Levels

Identifying potential support and resistance levels is crucial for traders to plan their entry and exit points. The mentioned support levels at $22.00, $21.70, and $21.35-$21.30, along with the possibility of testing the multi-month low at $20.70-$20.65, can serve as reference points for managing risk.

The failure to breach the 200-day SMA is a significant technical signal. This SMA can act as a strong resistance level and is closely watched by many traders and investors. The fact that the oscillators on the daily chart are moving into negative territory is another indication of bearish sentiment. It suggests that the downward momentum may continue.

Silver Price Resistance Levels

On the upside, resistance levels at $22.80, $23.00, the 200-day SMA at $23.25, and the $23.60-$23.70 supply zone are important to watch for potential reversals or profit-taking points. In the event of a bullish reversal, it’s useful to have potential target levels in mind, such as $24.00, $24.20-$24.25, and $25.00. These can guide traders in setting profit-taking goals.

Risk Management

The recommendation to exercise caution and implement risk management strategies is sound advice. Given the bearish sentiment and potential price volatility, it’s important for traders to protect their capital and limit potential losses. Monitoring overall market sentiment, including news, economic events, and geopolitical factors, is also crucial. These external factors can significantly influence the silver market.

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