This article was submitted by Aaron Hill from FP Markets.
Amid robust dollar demand and US Treasury yields navigating higher levels, the price of spot silver (XAG/USD) has well and truly been on the ropes today. Down -2.5% (at the time of writing), the precious metal stepped below two key levels of support at $23.97 and $24.10 on the daily chart, both of which are now marked as potential resistances. While the daily timeframe echoes a short-term bearish vibe—aided by the Relative Strength Index (RSI) crossing under its 50.00 centreline (negative momentum)—towards support between $23.09 and $23.31, it is important to always remain aware of what is happening on the bigger picture.
Higher Timeframe Trend Indecisive
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We can see that from the weekly timeframe—a chart often employed to identify the primary trend (assuming you’re a fan of Dow Theory)—price action has gradually decreased since February 2021. However, the recent pullback (the local uptrend since pencilling in a bottom around $18.00 in August 2022) tells me that the bulls are reasonably strong right now.
Ultimately, the weekly timeframe’s direction indicates an indecisive climate and that many sellers in this market (based on the daily chart) are unlikely to target much beyond the $24.00ish area.
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Having gained a degree in economics, Alan entered the world of financial services starting his career in London and then moving to New York for a number of years. His first post at a City bank saw him establish a reputation as an forex trader. Having recently returned from New York after eight successful years, Alan is now a prosperous trader in his own right concentrating on commodities and forex.
