[ad_1]
Below $32.66 is 50-Day MA at $32.01
If the price of silver continues below last week’s low of $32.66, a breakdown below the 20-Day MA will have triggered, opening the possibility of an eventual test of support around the 50-Day MA, currently at $32.01. Other price levels to watch for possible support include the 50% retracement at $32.53. However, 61.8% Fibonacci retracement of the full upswing beginning from a February 28 swing low, is at $32.12. Also, since the 50-Day MA is rising and may soon converge and rise above the 61.8% retracement.
Channel Shows Inclination Towards Lower Prices
The rising parallel trend channel that is highlighted on the chart illustrates the potential for an eventual test of support near the lower trendline of the channel. Notice that the top channel line marked an area of resistance during several attempts to break out above the channel. Most recently the rally to a $34.24 trend high was a failed bullish breakout attempt. This means that there is a chance the bearish pullback will continue, and possibility till approaching the lower trendline of the rising channel. But whether it does so or not the inclination may be to move towards the lower boundary of the channel.
Bull Trend Intact Above 50-Day MA
Nonetheless, the advance from the $28.75 swing low in December may be in its early stages when considering the 50-Day MA as an indicator of the rising trend. The 50-Day line was reclaimed on January 29, and it was successfully tested as support in late-February. That low was followed by a continuation of the bull trend with a higher swing high last week.
For a look at all of today’s economic events, check out our economic calendar.
[ad_2]
