Silver seems to be bracing for a major selloff, as the precious metal is starting to close below its descending triangle support.
How low can it go?
Check out these potential targets on the 4-hour time frame!
Silver (XAG/USD) 4-hour Chart Faster With TradingView
This precious metal has been stuck inside a holding pattern for quite some time, forming lower highs and finding support around the $72 mark since the start of the year.
The floor seems to be giving way, possibly sending silver on a free fall similar to that of gold these days.
Or can it still climb back above the triangle bottom?
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on silver and the U.S. dollar, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
Silver is closing below the pivot point level ($71.98) and appears to be setting its sights on the next support at S1 ($61.48).
At the same time, the 100 SMA is crossing below the 200 SMA to suggest that the path of least resistance is to the downside or that further losses may be in the cards.
If bearish pressure picks up, look out for a continuation of the drop until S2 ($54.92) or even S3 ($44.35) while dollar strength remains a dominant theme.
On the other hand, a move back above the triangle bottom could still lift XAG/USD back up to the triangle top near the moving averages and R1 ($78.48) or even until the $80 major psychological mark.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment.
Promoted: The Analysis & Strategy are only half the Battle; Your Mindset is the Rest.
Today’s chart art zooms in on silver’s triangle breakout. But as any pro will tell you, even the cleanest breakout or rejection setup can fall apart if the trader doesn’t stay disciplined when price starts testing the level.
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Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
