Silver Prices: Chart Formation Suggests Lower Prices in the Short-run
- Silver prices chopping lower within descending wedge
- A break below support around 17.60 should lead to lower prices
- A break higher doesn’t allow for much room to run
Silver prices aren’t far removed from where they stood just 24 hours earlier. We noted a developing series of lower highs and flat-bottom support around 17.60 taking on the shape of a descending wedge.
At the time of this writing silver is now a couple of lower highs later and flirting with breaking below the bottom of the wedge. Yesterday, we noted that a push higher would likely be difficult for the metal given resistance between the 17.80s and 18.00 vicinity. As it turned out, the third lower high was created at 17.86 before shoving back lower.
It might not turn into a rout, but a clean undercut into the upper 17.50s on the hourly should lead to near-term weakness towards 17.30/25. If selling becomes aggressive then a move could develop into strong support between 17.07 and 17.13.
A convincing break of the top-side trend-line puts this view at risk, but again, as said yesterday, there isn’t much room for silver to run before running aground with resistance.
On the data docket for today we 1Q final GDP and personal consumption data at 12:30 GMT. The more impactful data may come at 14:00 with the release of Consumer Confidence for June; analyst are looking for a small uptick to 93.4 from 92.6 in May.
See real-time trader positioning via the ‘Speculative Sentiment Index’.
---Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at @PaulRobinsonFX, and/or email him at firstname.lastname@example.org.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.