Here’s how low Silver can go in this downtrend
The post Here’s how low Silver can go in this downtrend appeared on BitcoinEthereumNews.com.
Silver has experienced a remarkable two-year bull run, recently reaching a 12-year high of $33.71 per ounce on October 19, 2024. This surge has seen silver outperform gold during this period, driven by robust demand and its growing appeal as a store of value. However, the market is now facing headwinds, entering a significant correction phase following its October peak. This peak marked a higher high within a two-year Channel Up pattern, yet technical indicators now signal the onset of a bearish leg. Historical comparison: A mirror of the May 2023 trend Notably, TradingShot highlighted in a recent TradingView post that silver (XAGUSD) is undergoing a strong correction phase resembling its prior bearish cycle early last year. Silver price analysis. Source: TradingShot/TradingView According to TradingShot, the current bearish move mirrors the correction initiated on May 5, 2023, which targeted the 200-day moving average and eventually reached the 0.382 Fibonacci retracement level. During the 2023 decline, silver initially found support at the 50-day moving average before being rejected on June 9, 2023. This rejection solidified the continuation of the downtrend. A similar scenario appears to be unfolding recently. Silver is currently trading below the 50-day moving average, confirming a bearish short-term outlook. Unless the price decisively closes above this moving average, the bearish momentum is likely to persist. Key levels to watch The immediate downside target for silver is $29.50, slightly above the 0.382 Fibonacci retracement level. This target aligns with an expected convergence between the price action and the 200-day moving average. These levels represent critical support zones that could temporarily halt the ongoing decline. Adding further weight to the bearish outlook, the 1W MACD recently formed a Bearish Cross, a strong reversal signal. This indicator is particularly noteworthy, as the last Bearish Cross occurred on May 24, 2023, coinciding…
Filed under: News - @ November 22, 2024 5:24 pm