Silver Prices Fall Deeper into Narrowing Range
- Silver remains in oscillation mode between converging daily trend-lines
- The very short-term trend is lower within the contracting range
- Weakness could carry down to around 19, but not any lower if our daily bullish set-up is to maintain
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While the price of silver oscillates back-and-forth in the converging range, so do we in examining the metal from varying time-frames. Today we will take a close up look to see where it is likely headed in the very short-term.
After putting in a small reversal day off the trend-line running back to the July peak, silver is weakening towards the middle of the narrowing daily range. Broadly speaking, this is setting up nicely so far for the bulls as long as it continues to coil and hold support. It could be a big October.
But looking at the very short-term, the bias is tilted in favor of shorts with the near-term trend pointing lower following the down lower from resistance.
On the hourly chart we see a series of a lower highs and lower lows kept under tight wraps with the help of a downtrend line beginning at the 9/22 peak.
We will use the trend-line as our short-term guide; stay below, bias remains lower, break above then we will turn neutral to possibly bullish, depending on how it breaks above – with force, or just a drift above? How price action unfolds on breaks and touches of levels of sloping support and resistance matters.
Further weakness could take silver back towards the lower trend-line of the ongoing wedge development around the 18.90/19 level, but not any further if our current bullish technical structure on the daily is to maintain its integrity.
Silver 1-Hour (Daily)
Chart created with Tradingview
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---Written by Paul Robinson, Market Analyst
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