Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View More
Silver Prices – Down-trend Persists, But Support Provides Warning to Shorts

Silver Prices – Down-trend Persists, But Support Provides Warning to Shorts

Paul Robinson,


  • Down-trend has been pervasive, but...
  • Support is at hand, providing backdrop for potential bounce
  • FOMC meeting looms, trading expected to be erratic until then

Silver prices are currently trading in the $13.95/82 area where a bounce has developed on three occasions since November 23rd. Can it make it a fourth? At the immediate moment the benefit of the doubt must be given to the short-term downward trend dating back to the Monday high at $14.62.

A break below the 12/2 low at $13.82 does not necessarily open the door up for an aggressive move lower, though, due to the existence of a bottom-side parallel around the $13.75 mark. So, even if we see a breakdown below the 12/2 low, shorts could be reined in fairly quickly.

While certainly not ‘feeling it’ from the long-side, as a hard-fastened rule I don’t short into support, just as I don’t buy into resistance. With that in mind, in the support zone or at the lower parallel should we see a strong bullish reversal or engulfing bar on the 4-hr to 1-day time-frame I am inclined to believe a rebound could ensue in the very near-term, despite the generally pervasive down-trend.

For the aggressive-minded trader looking to establish a long this could soon be a good place to start. If, however, you have been riding a short position lower, this is not a bad spot to at least tighten up trailing stops or book profits altogether.

Next week’s FOMC meeting looms large. The Fed is expected by many to raise rates for the first time since ending its last tightening cycle in 2006. Trading between now and then is likely to become erratic as market participants square up positions ahead of such a major event. Taking that into consideration, from a tactical standpoint taking only quick ‘hit-and-run’ trades or standing aside all together – in any asset class – makes the most sense.

Silver Prices (XAGUSD) 4-hr: Nov - Present

Written by Paul Robinson, Market Analyst

You can follow Paul on Twitter at @PaulRobinsonFX or email directly at

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.