Downside pressure increases: Silver technical analysis
Silver technical analysis shows that a bearish head and shoulders pattern is close to completion on the lower time frame. Silver could fall towards the $16.80 level before recovering.
Silver price technical analysis shows that the metal may continue to head lower due to the formation of a large head-and-shoulders pattern across the lower time frames.
According to the downside projection of the bearish pattern, silver could fall towards the $16.80 support level before recovering higher.
Silver medium-term price trend
Silver has repeatedly struggled to regain upside momentum after reversing sharply from the $18.86 resistance level earlier this month.
Silver technical analysis shows that sustained weakness under the $17.95 level could see the metal falling back towards the $17.30 support level.
Sellers strongly rejected silver from the $18.00 level this week, further underscoring that the metal may have to head lower to attract fresh buying demand from more attractive levels.
Silver’s 20-day moving average is currently located around the $17.95 level, and has acted as a key pivot for traders over recent weeks.
Sustained weakness under the $17.95 could see silver falling back towards its key 50-day moving average, around the $17.30 level.
Traders should also be aware that Silver’s 100-day moving average is located around the $17.55 level. Watch out for weakness under this area as it could increase technical selling towards the metal.
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Silver short-term price trend
Silver price analysis shows that the metal is only bullish over the short-term while price trades above the $17.50 support level.
The short-term technicals surrounding silver are turning more bearish due the presence of a head-and-shoulders pattern on the lower time frames.
Over recent days price action has appeared increasingly weak, while the bearish pattern has been taking shape and is now close to completion.
The neckline of the bearish pattern is located around the $17.73 level, and remains a key focus for short-term silver traders.
Overall, watch out for weakness under the $17.73 level as the size of the pattern indicates that silver could eventually fall towards the $16.90 to $16.80 support area.
Silver technical summary
Silver price technical analysis indicates that bears are in full control while price trades under the $17.95 level. Silver could eventually fall towards the $16.80 level.
FURTHER READING: Downside pressure increases: Silver technical analysis