Silver intrinsically weak and poised to fall further
|- Opposed to gold, Silver offers a weak technical stance and seems poised to extend its slump.
- The daily chart shows that the metal is meeting sellers around a directionless 100 SMA.
- Bearish case to firm up on a break below 25.95, the immediate support level.
Silver surged throughout the first half of the day but turned lower ahead of the release of the FOMC Meeting Minutes on the back or renewed dollar’s demand. The white metal traded heavily throughout the American afternoon, bottoming for the day at 25.97, yet recovering ahead of the US close to finish the day around $26.15 an ounce. Opposed to gold, Silver offers a weak technical stance and seems poised to extend its slump after ending the day unchanged.
The daily chart shows that the metal is developing below a directionless 100 SMA, with approaches to the indicator resulting in sharp intraday retracements. In the near-term, and according to the 4-hour chart, bears seem to be in control. Silver develops below all of its moving averages, with the 20 SMA losing its previous upward strength. Technical indicators remain within negative levels, without certain directional strength, anyway reflecting the absence of firm buying interest.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.