Silver Price Forecast: Silver finds some support near the $19.00 mark and stages a modest recovery from over a one-week low touched earlier this Wednesday. The uptick allows the white metal to snap a three-day losing streak and stall its recent sharp pullback from the $21.25 area, or the highest level since late June.
- Silver attracts some buying near the $19.00 mark, or over a one-week low touched this Wednesday.
- The bearish technical setup suggests that the attempted bounce runs the risk of fizzling out quickly.
- Traders might wait for a sustained break below the $19.00 mark before placing fresh bearish bets.
From a technical perspective, any subsequent move up is likely to confront stiff resistance near the $19.55-$19.60 confluence support breakpoint. The said region comprises the 50% Fibonacci retracement level of the recent recovery from the YTD low and the 100-period SMA on the 4-hour chart. This, in turn, should act as a pivotal point and help determine the near-term trajectory for the silver.
A convincing break through the aforementioned barrier will suggest that the recent downfall has run its course and lift spot prices back towards the $20.00 psychological mark. The latter coincides with 38.2% Fibo. level, above which the silver could climb the 23.6% Fibo. level, around the $20.40 area. The momentum could further get extended towards reclaiming the $21.00 round-figure mark.
Meanwhile, oscillators on the daily chart have just started drifting into the negative territory and maintain their bearish bias on the 4-hour chart. The set-up supports prospects for further losses, through sustained weakness below the $19.00 mark is needed to reaffirm the outlook. The silver might then slide to the $18.60 zone before dropping to the $18.35 area and the $18.00 round figure.
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