Silver prices hit a new low in a week, focusing on support at the 29.00 level
On Tuesday (June 25th), during the Asian market, spot silver suddenly fell rapidly in the short term, falling more than 1% at one point, reaching a weekly low of $29.23 per ounce. Christian Borjon Valencia, an analyst at FXStreet, recently wrote an article on Tuesday analyzing the technical trend of silver prices.
Valencia pointed out that the technological outlook shows a bearish devouring pattern starting from last week, with the Relative Strength Index (RSI) showing bearish momentum.
Spot silver closed slightly higher by 0.1% on Monday, at $29.56 per ounce. Previously, silver prices closed sharply lower by 3.88% last Friday.
Valencia wrote that last week, silver prices formed a "bearish swallow" chart pattern, opening the door to further decline. As the relative strength index (RSI) turns bearish, the momentum shifts towards sellers, paving the way for further decline.
Valencia stated that in this context, the first support level for silver prices will be the 50 day moving average (DMA) of $29.14 per ounce, followed by $29.00 per ounce. If it falls below the above level, it may lead to a low of $28.66 per ounce for silver testing so far this month, and is expected to fall towards the 100 day moving average of $26.82 per ounce thereafter.
Spot Silver Daily Chart
Valencia added that on the other hand, if silver prices resume an upward trend, the next resistance level is the June 7th high of $31.54 per ounce. If this resistance is overcome, silver prices will aim at $32.00 per ounce and then challenge the year to date high of $32.51 per ounce.
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