Commodities

Technical Analysis – Silver maintains negative signals after pullback

Posted on March 30, 2020 at 3:43 pm GMT

Anthony Charalambous, XM Investment Research Desk

Silver reversed from an 11-year low of 11.62 and a key support region which includes the 150.0% Fibonacci extension of the up leg from 14.28 to 19.63 – where buyers pushed the price back up to the area of troughs from late 2018 and mid-2019.

Despite this, the Ichimoku lines continue to reflect a bearish picture in the price action with a flattened blue Kijun-sen line and the red Tenkan-sen distancing itself below. Additionally, this is also starting to be reflected within the short-term oscillators. The negative momentum in the MACD and the RSI is strengthening in bearish regions, while the stochastics have completed a bearish crossover in the overbought territory, indicating a possible down move.

Even more so, the new push down is further backed by the declining 50-and 100-day simple moving averages (SMAs) and their bearish crossovers of the 200-day SMA.

Moving back south, initial support could come from the 13.88 level from November 2018. Closing below this, the Tenkan-sen line could apply some friction ahead of the 13.00 round number. Moving past this too, the price could extend towards the 11.78 obstacle before turning the focus towards the 150.0% and 161.8% Fibos of 11.60 and 11.00 respectively.

Otherwise, initial resistance to upside corrections could come from the 14.70 and 14.88 levels ahead of the 15.54 and 15.91 obstacles. Conquering these, next to challenge the climb may be the 16.38 and 16.55 inside swing lows and the SMAs at 16.60 and 17.00 above.

Overall, the scale appears levelled for now, but looks to tip towards a negative picture enduring in the near-term with a break below 13.88.

silver

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