Silver Technical Update
Silver slid during the 3/20 global trading session. The daily candle basically engulfed the previous three daily candles that were going against the bear run from 37.44. We can consider it a bearish continuation signal toward the next support area that starts near the 31.00 handle down toward 61.8% retracement at 30.44.
Let's inspect the intraday 1H chart to see if the market will take this days momentum and extend the March downswing further. First of all the alignment of the price action with the moving averages (200, 100, 55, 21, is bearish. The RSI tagged 30 so it also just became bearish after it tagged 70 in the previous momentum cycle. If the current bullish momentum cycle fails to push the RSI above 60, we are looking at a persistent bearish momentum in the short-term.
Also if a pullback fails to break back above 32.53(61.8% retracement), the 3/20 bearish move remains in charge of the general direction in the intra-day time-frame looking ahead to the 3/22 Asian-European session.
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Fan Yang CMT is a trader, analyst, educator and the Chief Technical Strategist FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
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