Silver technical analysis: Silver price drops below 30
On Friday (July 19th) during the European trading session, silver'>silver prices were reported at $28.993/ounce, a decrease of 2.72%.
Due to the shift of the US dollar towards recovery mode, silver'>silver's performance has been hit, becoming the worst week since 2024. The silver'>silver price quickly reversed most of the gains in June within just three days, and is currently trading close to 29.24, down about 10% from the 11 year high of 32.49 in May.
The forward resistance trend line formed from the May high is currently at 29.30, and a drop below this level may immediately squeeze the price to the June base of 28.55. The inclusion of the 38.2% Fibonacci retracement level from February to May at 28.45 strengthens the importance of the region. Therefore, if it fails to receive support at 28.55, it may prompt the price to drop faster to the 50% Fibonacci level of 27.20. If the level of 27.00 is also fragile, the next stop loss point may be the 61.8% Fibonacci level of 26.00.
Due to the negative crosses of the 20 day and 50 day moving averages, as well as the decline in technical indicators, it seems unlikely that there will be a significant rebound at present. However, as the random oscillation index falls below 20 and enters oversold territory, the downward pressure may not last too long.
In order to improve the outlook, the price must return to the position of 30.00, which is the 20 day moving average and 23.6% Fibonacci number. If the bulls gain an advantage, the recovery phase may expand to the July high of 31.73 and then rise to the top of 32.49. Even higher, bulls may reach a peak of 33.50 or close to 35.00 near the uptrend line drawn in December 2022.
Overall, silver'>silver may face unfavorable conditions in the near future, but if the price falls below 28.45, bulls will start to worry even more.
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