Silver prices plummet 3% to near two-week low, analysts: pay attention to 50 day moving average support
On Wednesday (July 17th), despite the weakening of the US dollar, spot silver still plummeted by 3%. FXStreet analyst Christian Borjon Valencia recently wrote an article analyzing the technical trend of silver prices.
Valencia reported that silver prices plummeted more than 3% on Wednesday, driven by profit taking, and have now fallen below $31.00 per ounce.
Spot silver closed down 3.01% on Wednesday, at $30.29 per ounce; The lowest intraday silver price fell to $30.03 per ounce.
Valencia wrote that silver prices fell sharply from this week's high of around $31.42, and traders took profits after silver prices rose more than 10% since early July. Despite a slight decline, silver maintains an upward trend supported by the 50 day moving average (DMA) of $30.12 per ounce. Silver prices briefly fell below this level during trading on Wednesday, hitting a daily low of $30.05 per ounce.
From a momentum perspective, sellers are gaining traction, with the Relative Strength Index (RSI) declining but still in a bullish zone.
Valencia pointed out that on the downside side, silver prices must fall below the 50 day moving average to continue bearish, followed by the $30.00/ounce mark. If it falls below these two levels, the next support level will be the June 26th low of $28.57 per ounce.
If silver weakens further, the silver price may drop to $28.00 per ounce.
Daily chart of spot silver
Valencia added that on the other hand, if buyers intervene and push silver prices above $31.00, they may target the July 11 high of $31.75 per ounce. If it continues to rise, silver prices may rise to $32.00 per ounce.
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