- Silver trades over 3% lower on Wednesday but the price has found some support.
- A change in trend has not been confirmed just yet but there are some bearish signals.
Silver 4-hour chart
Silver has underperformed on Wednesday as the US dollar continues to mount its comeback. Over the last couple of sessions, the dollar index price has moved nearly 1% from its lows. Both gold and silver have struggled and analysts are starting to wonder if this is the start of a longer-term reversal.
Silver trades well technically and the chart below shows there is some support at USD 27 per troy ounce. The green level shows that the price has tested the level many times and it has reacted like a magnet in recent times. If the level dows break the next support zone is at the red level near USD 26.11 per troy ounce. Beyond that, there is also a black downward sloping trendline that could stem the losses.
The indicators are bearish at the moment. The MACD histogram is red and the signal lines look to be crossing the midpoint. The Relative Strength Index is edging toward the oversold area but a bullish failure swing is setting up. This is when the price makes a higher low wave but the indicator makes a lower low wave.
Longer-term the trend is still bullish and this could just be a small blip. If the USD 26 per ounce support level breaks there could be a small suggestion the trend could change to the downside but for now, buying dips is still the philosophy and if the green level holds this could re-enforce the view.
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Additional levels
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