Silver Price Analysis: A bear flag break could offer a good short opportunity


  • Silver trades 2.35% higher on Thursday as the price continues to retrace.
  • There is a bearish flag pattern on the 4-hour chart that could be important.

Silver 4-hour chart

Sliver has been moving higher since the start of the week after a dismal last week. The price has not managed to move above USD 24.50 per troy ounce where there had been some resistance in the past. Much of the future price action will depend on the non-farm payroll result on Friday. 

On the price chart, the key feature is the bear flag pattern marked by the purple lines. If the price breaks this formation to the downside it could indicate the bear trend is back on. The target for the bears could then be the wave low at USD 21.70 per troy ounce. 

If the pattern fails and the price does move above USD 24.50 per ounce then the black horizontal line at USD 26 per ounce would be the next important resistance. The level is the strongest on the chart and has been tested on multiple occasions. 

The indicators are pretty flat at the moment and the MACD histogram and signal lines are near the mid-level. Overall this is still an uptrend on the higher timeframes but the retracement is pretty deep. A break back above the black resistance line could restore some confidence for the bulls but at the moment the bears are still in charge. 

Silver Analysis

Additional levels

XAG/USD

Overview
Today last price 23.78
Today Daily Change 0.54
Today Daily Change % 2.32
Today daily open 23.24
 
Trends
Daily SMA20 25.59
Daily SMA50 26.02
Daily SMA100 22.03
Daily SMA200 19.22
 
Levels
Previous Daily High 24.32
Previous Daily Low 23.13
Previous Weekly High 26.96
Previous Weekly Low 21.66
Previous Monthly High 28.9
Previous Monthly Low 21.66
Daily Fibonacci 38.2% 23.58
Daily Fibonacci 61.8% 23.86
Daily Pivot Point S1 22.81
Daily Pivot Point S2 22.38
Daily Pivot Point S3 21.62
Daily Pivot Point R1 23.99
Daily Pivot Point R2 24.75
Daily Pivot Point R3 25.18

 

 

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