Turnaround imminent?
From May to September, the price of silver fluctuated between USD 28 and USD 32 (below the grey trend line) with a slight downward trend. In mid-September, it managed to break above the grey trend line – after a successful back test at the beginning of October, the eleven-year high of just under USD 35 was quickly reached.
Now, though, a strong downward impulse has been evident for two weeks, which has currently led the price into a very important zone in the USD 30 range. Both average lines, as well as the grey downtrend line and the blue uptrend line, currently run within a range of one dollar around the important USD 30 mark. The 200-day line and the blue upward trend line already served as support twice.
Both average lines continue to rise, although the 100-day line, which fortunately continues to run clearly above the 200, is losing momentum and has almost started to move sideways.
What about the indicators?
All of the indicators shown are close to or at their six-month lows and could – as before – point to a turnaround in the silver price.
MACD and stochastics generated a sell signal at the same time at the end of October (the blue line crossed the red line downwards in each case) – the stochastics indicator is currently at a six-month low and appears to have been turning back to buy for around ten days (however, there has not yet been a permanent crossing of the blue line over the red line). The trend confirmer has clearly turned negative and is now clearly below the neutral 100, an area that has only been breached twice in the last six months. The RSI and momentum are currently close to their July/August lows – this was also the six-month low of the silver price.
Source: Comdirect
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