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Silver looks set for another move lower as support breaks


MongiIG

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Attempts to regain lost ground have started to falter, with the wider downtrend for silver kicking back in this week.

bg_silver.jpgSource: Bloomberg
 Joshua Mahony | Senior Market Analyst, London | Publication date: Tuesday 14 September 2021 

Silver heading south after latest rebound

Silver spent much of August on the front foot as it regained ground lost in the first week of the month.

However, that sharp decline on 6-9 August highlighted the ongoing bearish trend seen for this precious metal, with the commodity losing 18% over the past four months. Unfortunately for the silver bugs, that trend looks likely to persist from here.

The latest rebound took us back into the 61.8% Fibonacci resistance level at $24.81, with price turning lower since.

XAGUSD-Daily14921.pngSource: ProRealTime

 

Meanwhile, looking at the four-hour chart we can see that the initial rally up through wedge resistance has since given way to a bearish breakdown. The decline through $23.75 confirms the bearish reversal signal, with further downside expected from here.

We are also seeing intraday lower highs take shape, providing opportunities for this trading on the shorter timeframes. The standard deviation channel highlights that intraday downtrend, with a break through $24.30 required to bring about a more positive near-term outlook. Until then, further downside looks likely from here.

XAGUSD-4-hours14921.pngSource: ProRealTime
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