Silver trades at $58.39 after falling nearly 15% over the past month, closing in on immediate support at $58.08. A bearish engulfing candle and indicators pointing lower keep sellers in control, though an oversold RSI leaves room for a snapback.
Silver has dropped nearly 15% over the last month and now trades at $58.39 on the 4-hour chart, pressing against immediate support at $58.08. Momentum sits firmly with the sellers, but stretched conditions mean the move down is not one-way.
Sellers stay in control
The metal has carved lower highs and lower lows since peaking at $71.65 on June 17. The latest bearish engulfing candle formed at $59.775, adding weight to the downside.
Price also sits well below its trend markers. SuperTrend resistance stands at $61.11, with the Ichimoku Cloud running from $59.80 to $60.39 above the market. As a result, both levels reinforce the bearish structure and sit as resistance above any recovery attempt.
Oversold, but not extreme
The relative strength index reads 34.45, near oversold territory yet short of an extreme that would demand a bounce. Volume is fading on recent candles, which the source reads as sellers pausing rather than a bullish reversal.
Volatility remains high. Average true range sits at $0.98, meaning silver moves nearly 1.7% per 4-hour bar. Price also trades 3.7% below its 20-period moving average, a gap that leaves room for a mean-reversion bounce even inside the downtrend.
What could turn the tape
A sudden short-covering rally is the main upside risk the analysis flags. It becomes possible if price fails to break $58.08 and reclaims $58.90. The bullish case only opens if silver closes above $61.20, breaking the SuperTrend and the prior swing high. Until support truly holds, the analysis reminds traders that the trend is their friend.
Source: Investing.com
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