Silver has broken down 3% below its 20-period moving average, trading at $64.57 and facing key support at $63.64. The move leaves sellers in control for now, though technical indicators suggest a bounce is possible if that support level holds.
Silver dropped 3% below its 20-period moving average on its 5-hour chart, now trading at $64.57 after weeks stuck in a distribution range. The metal has moved decisively below the SuperTrend resistance at $67.29 and has broken through the Ichimoku Cloud, a signal that sellers are dictating the pace.
Support at $63.64 in focus
The next structural floor sits at the 200-period simple moving average near $63.64, a level that overlaps with the 50% Fibonacci retracement. That confluence marks the spot where bulls are most likely to attempt a defense. The breakdown carried heavy volume, with both the SuperTrend and MACD indicators turning negative, reinforcing the bearish tilt.
But the picture is not one-sided. The Relative Strength Index reads 38.5, and the Commodity Channel Index sits deeply negative, suggesting short-term exhaustion. A bounce off $63.64 remains possible even as the broader trend stays down.
Key levels to watch
Traders are treating $67.35 as the level that would invalidate the bearish case if silver reclaims it, while a break below $63.60 would open the door to further declines. Price action between $64.50 and $66.00 is considered a no-trade zone, where low conviction and high whipsaw risk make directional bets less reliable.
The setup leaves silver at a technical crossroads. Trend followers see the current breakdown as confirmation to stay short, while contrarians are watching the 200-period average for signs the selloff has run its course.
Source: Investing.com
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