Silver Price Analysis: Silver price in steep sell-off after touching top of four-year range

Source Fxstreet
  • Silver price is declining after touching the top of a four-year consolidation range at roughly $30.00. 
  • XAG/USD has fallen to $27.00 and could decline further with support not materializing till $26.00. 

Silver (XAG/USD) price has continued to sell-off after being rejected by the top of a long-term range at just below $30.00 (green line) on April 12.

The precious metal is now in the midst of a steep decline and will probably continue lower till support materializes from the top of a smaller year-long range at $26.00.

Silver Daily Chart

The Moving Average Convergence/Divergence (MACD) momentum indicator has crossed below its signal line, indicating Silver has probably reversed its medium-term trend and is set to move even lower. The signal is improved by the fact that MACD is a more reliable indicator in markets that are not strongly trending such as that of Silver. 

Silver price will probably fall to support from the former range highs at $26.00. At that level it could base and recover. A decisive break below $26.00 would return Silver to inside its year-long range and possibly the lower trendline at roughly $23.00. 

Only a decisive break above the 2021 high of $30.07, however, would reverse the bearish picture and suggest Silver was going higher. Such a move would also signal a breakout from the whole four-year consolidation with an initial target at $32.40 where former resistance lies. 

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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