Investing.com - Financial Markets Worldwide

Spot Silver May Figure Tight Consolidation Range

ByCommodityOnline
Published 04/24/2013, 07:15 AM
Updated 05/14/2017, 06:45 AM
Sharp bear run:

Silver has slid sharply in April from the month's high at 28.06 to a 22.02 low, a 21.4% dip within a week of price action.

Consolidation: Since finding support near the 22.00 handle, the market has been in a tight consolidation range up to the 23.96 level. Let's call it between 22 and 24. This range was really established by the highs and lows from the 4/17 session as shown in the 1H chart. You can see that it has been more of a congestion, or triangle type of pattern until price broke down a rising support during the 4/23 session, reviving some bearish bias.

XAG/USD
Momentum: The 1H RSI shows a market that has maintained bearish momentum even through this consolidation as the indicator reading held under 60 and tagged 30 again. As I noted before, this market appears to be picking up some of the residual bearish bias as price broke below congestion support. The RSI reflects the same bearish notion from the momentum perspective.

Breakout targets: A break below 22 continues a downtrend with a breakout target using the width of consolidation range towards the 20.00 handle. A break above 24.00 will be needed to suggest very short-term bottoming with a possible correction back toward 26.00.

Latest comments

Loading next article…
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.