Silver Price Analysis: Bears taking over and test bullish commitments at key support

  • Silver bears are taking the lead into the critical days ahead for the week.
  • Bears are testing the bullish commitments around a critical support structure. 

As per the prior analysis, Silver Price Analysis: Bears on the prowl, the market remains within a bearish as the week progresses towards the showdown event in the Federal Open market Committee meeting. 

Prior analysis

According to the weekly chart, silver’s bullish trend could well have met its apex and be set for a significant downturn in the coming weeks ahead.

The price has dropped below the dynamic weekly support line and from a daily perspective, the price is below the June-July support between 25.75 and 25.52. 

The price has made over a 38.2% Fibonacci retracement and is pressured lower from there which opens prospects of a downside continuation for the days ahead.

However, a bullish start to the week could test the 4-hour 20 EMA that guards 25.31 resistance.

If the bears step in there or below, then the downside extension to test the 24.50s initially and the 24.30s thereafter will be on the cards. 

Live market analysis

The price is being rejected by the 38.2% Fibonacci at this stage and is showing signs that there is no way above it, for now. 

This leaves the bears in good stead for the sessions ahead. 

However, on the other hand, the price action took out the 21 July highs in the 25.30s and has subsequently tainted the prospects of a bearish H&S on the 4-hour chart given the higher RHS’s high:

Nevertheless, the head of the formation’s high is still intact and therefore bears are still in play.

A break of the neckline near 25.10 and the prior lows 25.12 for the sessions should be monitored by the bears.

A subsequent retest of this area vs the counter trendline support could offer an optimal entry point to target a downside extension and to test the 24.50s initially and the 24.30s thereafter.

On the flip side, however, a stronger correction will see the 50% mean reversion at 25.60 of the daily bearish impulse that meets prior daily lows ahead of the 61.8% Fibo in 25.83.

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD struggles around 1.17 in aftermath of German elections

EUR/USD is trading around 1.17, struggling to rise amid the close German elections. The safe-haven dollar dropped earlier as the Evergrande crisis eased. US Durable Goods Orders and a speech by the ECB's Lagarde are eyed.


GBP/USD rises to 1.37 as upbeat mood outweigh petrol crisis

GBP/USD is trading at around 1.37, benefiting from the upbeat market mood and last week's BOE hawkishness. Brexit-related shortages of petrol in the UK hurt sterling earlier. 


XAU/USD eyes $1767 critical supply zone

Gold is easing off the higher levels, as the risk-on market environment amid ebbing China Evergrande fears and US stimulus optimism dulls the safe-haven appeal of the bright metal.

Gold News

Huobi to stop servicing Chinese users as China vows strict crackdown on crypto

A few months after the cryptocurrency mining ban in China, the country issued another update last week, reiterating that digital assets are banned and crypto exchanges are prohibited.

Read more

Apple: Is the new iPhone 13 a reason to buy?

Apple stock barely registers any change on Friday. AAPL closes at $146.92 for a tiny gain. Stocks are struggling for upside momentum from the latest dip.

Read more