Skip to Content
News & Analysis at your fingertips.
Free Trading Guides
Please try again

Live Webinar Events


Economic Calendar Events


Notify me about

Live Webinar Events
Economic Calendar Events






More View More
Silver Price Technical Analysis: More Weakness, Watch How Gold Treats Support

Silver Price Technical Analysis: More Weakness, Watch How Gold Treats Support

What’s inside:

  • Silver short-term bounce fizzles as resistance in low-17s proves too much
  • Support close at hand, but gold has room to go and will likely keep pressure on silver
  • Key levels and directional considerations outlined

Check out this newly released trading guide – Building Confidence in Trading

In yesterday’s webinar, we looked at the price action in precious metals and noted the bounce as looking vulnerable, especially in silver. From a pure price action standpoint, the channel-break on 9/18 set the stage for lower prices, and from a market positioning perspective a large speculative long position (fuel for selling) had been built up in the futures market during the July-September rally. The initial break took silver down to support surrounding the low-17s, where it then subsequently broke and led to the retest prior to yesterday’s drop. The decline in yesterday’s session further cements the area in the 17.00/30 vicinity as resistance in the near-term.

Looking lower, support arrives not far from here; targeted levels begin at 16.71, then 16.56, and with aggressive selling at some point 16.09 could come into play. The 16.71 low created on 8/25 could prove to be difficult to break on an initial attempt as it was a final jab lower during a congestions phase before rallying two-weeks straight. But overall, price action is still indicative of a market wanting to head lower.

Silver: Daily

Keep an eye on gold and a close below the 1288 level…

Gold saw more of a bounce than silver but was still viewed as more likely a selling opportunity than buying. The recent lift came from right around a period of consolidation in August, but with another round of selling gold is back below the double-tops created in April/June. The 9/21 low clocks in at 1288, and with a breakdown we’ll look to 1275 as the next level of support – the 8/25 jab-day low before shooting higher by over $80. This is the equivalent of 16.71 for silver (given silver is weaker than gold, if gold heads towards 1275, the 16.71 line discussed earlier is not likely to hold; hence keeping an eye on gold weakening below 1288 on a closing basis is important).

Paul conducts webinars Tuesday-Friday. See the Webinar Calendar for details, and the full line-up of upcoming live events.

Gold: Daily

---Written by Paul Robinson, Market Analyst

You can receive Paul’s analysis directly via email by signing up here.

You can follow Paul on Twitter at @PaulRobinonFX.

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