Silver Technical Analysis and Near-Term Outlook
This is a brief analysis for the next day or so. Our weekly Metals Commentary and daily updates are detailed and thorough price forecasts that cover key COMEX precious metals futures contracts and LME Non-Ferrous (Base) metals, spot gold, the gold/silver ratio, and metals ETFs. If you are interested in learning more, please sign up for a complimentary four-week trial.
Silver’s move down from $90.105 remains hesitant. Even so, prices held below the 50-day moving average on a closing basis again. The outlook continues to lean in favor of a decline to challenge the 62 percent retracement from $61.660 at $72.53. Taking out $74.93 will clear the way for a test of $72.53, a close below which will open the way for $69.31 and then the $67.93 smaller than (0.618) target of the wave down from $97.545.
That said, there is still a reasonable chance for a larger correction to test the 20-day moving average at $78.19 and possibly key near-term resistance at $79.75. Settling above $79.75, which is the 38 percent retracement from $90.105, would warn that the move down is failing and call for a push to challenge $81.80 and then the 62 percent retracement and the smaller than target of the wave up from $71.310 around $84.38.
