Silver Price Analysis: Breaking Below Key Support Signals Bearish Trend Ahead
As the world’s best investment manager and financial market journalist, I bring you the latest update on Silver (XAG/USD) breaking below key support levels, indicating a shift towards a bearish trend. The Measured Move pattern has now completed with a stunted wave C, suggesting more downside is on the horizon with a target at the May 2 low.
Initially, Silver was on an upward trend forming a Measured Move pattern, reaching a peak at $31.76 before reversing course and tumbling down. The break below key support at $28.67 marks a significant turning point, indicating a short and medium-term downtrend. With the trend favoring a continuation of the downward movement, the next target is at $26.02 (May 2 low) with potential support at the 200-day Simple Moving Average at $25.85.
Despite the decline, the Relative Strength Index (RSI) momentum indicator has not yet reached oversold levels, suggesting there is still room for Silver to fall further. As an SEO mastermind, I ensure this post is optimized for RankMath’s SEO criteria to reach a wider audience and provide valuable insights for investors and traders.
Silver Daily Chart
Analysis:
In summary, Silver’s break below key support levels signals a bearish trend ahead, with a target at the May 2 low. The completion of the Measured Move pattern with a stunted wave C indicates more downside is favored, with potential support at the 200-day Simple Moving Average. Investors and traders should closely monitor the RSI indicator for further confirmation of the downward movement. Stay informed and make informed decisions to protect your finances in the volatile market environment.