What’s inside:
- Silver price sitting on December trend-line
- Continued momentum from last week’s sharp decline expected to continue
- Key technical levels outlined
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After falling sharply last week from resistance, silver price is on the verge of breaking an important trend-line rising up from the December low. The sharp break was followed by a one-day bounce, but momentum looks set to carry the metal lower. A break below trend support and the 3/3 low of 17.64 exposes the neckline of the inverse head-and-shoulders we were once working off of for higher prices. That level comes in around the 17.40 mark. On a drop below there, we will look towards the support zone in the 17.25/00 area; which is an important are of support extending back as far as June. In the same vicinity lies the trend-line off the July trend-line. Should silver extend to that point we would look for a bounce to develop.
If silver makes an attempt to break the December trend-line, but fails to hold below on a daily closing basis, then either further losses will be put on hold for a short while or a turn higher could develop. At this time, though, given the sharp decline last week some work would be needed in order to turn the picture constructive again.
For now, we look for silver to make a break for it before finding support at lower prices.
Silver: Daily
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---Written by Paul Robinson, Market Analyst
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