Silver: Technically Still Not Convincing Enough

From a technical point of view, spot silver remains on the downside despite the recent rebound.

Trader 1

On Wednesday, spot silver retreated 2.5% to $23.95, after bouncing nearly 10% from its low in late November. U.S. stimulus hopes eased as investors expect lengthy debate in the Congress.

Meanwhile, Bloomberg data showed that total known ETF holdings of silver rose 1.0% so far in December, but still a very modest growth compared with the surge in demand during March to July.

Source: GAIN Capital, TradingView

On a daily chart, spot silver remains on the downside despite the recent rebound. In fact, it has retreated after reaching a bearish trend line drawn from August, and has potentially formed a bearish evening star pattern. The level at $24.90 might be considered as the nearest resistance, while the 1st and 2nd support are expected to be located at $21.60 and $20.50 respectively.

More from Silver

From time to time, StoneX Financial Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.