Silver Futures Analysis: Bearish Trend Continues Despite Volatility
Silver futures have been under selling pressure, with prices stuck in a narrow range despite high demand for use in solar panels. After reaching lows of $29.793, silver futures tested a new high at $34.921 on Oct. 22, 2024, but have since been on a continuous selling spree.
Technical indicators suggest further bearish movement for silver futures. In the daily chart, the 9 DMA and 18 DMA are about to come below the 50 DMA, with a bearish dozy star formation potentially pushing prices to test the significant support at the 200 DMA at $28.919. A breakdown below this level could keep silver futures in bearish territory.
On the weekly chart, after three consecutive bearish candles, this week’s candle appears to be a reversal but may lose its gains as silver futures remain in a downward channel. The closing level for the week will be crucial in determining the next direction for silver prices.
In conclusion, a bearish crossover in the daily chart signals a breakdown in silver futures. Traders are advised to take positions at their own risk, as the author does not hold any position in silver.
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