Advertisement
U.S. markets closed
  • S&P 500

    5,254.35
    +5.86 (+0.11%)
     
  • Dow 30

    39,807.37
    +47.29 (+0.12%)
     
  • Nasdaq

    16,379.46
    -20.06 (-0.12%)
     
  • Russell 2000

    2,124.55
    +10.20 (+0.48%)
     
  • Crude Oil

    83.11
    -0.06 (-0.07%)
     
  • Gold

    2,254.80
    +16.40 (+0.73%)
     
  • Silver

    25.10
    +0.18 (+0.74%)
     
  • EUR/USD

    1.0800
    +0.0007 (+0.06%)
     
  • 10-Yr Bond

    4.2060
    +0.0100 (+0.24%)
     
  • GBP/USD

    1.2636
    +0.0014 (+0.11%)
     
  • USD/JPY

    151.1890
    -0.1830 (-0.12%)
     
  • Bitcoin USD

    70,508.63
    -278.94 (-0.39%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,952.62
    +20.64 (+0.26%)
     
  • Nikkei 225

    40,369.44
    +201.37 (+0.50%)
     

Will silver prices break below key support?

Massive silver sell-off in bullion market (Part 2 of 2)

(Continued from Part 1)

Silver price movement

April silver futures contracts broke below the important support level of $16 per ounce on March 6, 2015. Silver prices plunged lower due to a massive sell-off from stockists, traders, and jewelers on weak demand. The strong dollar also played a pivotal role in the decline of silver prices.

Pivot points for silver

Silver could test the next important support of $15.50 per ounce, which last occurred in November 2014. Market sentiments for silver are bearish, and bullish traders could see resistance at $16.50 per ounce levels. The resistance is formed by silver prices hitting this level several times in February 2015.

If we look at the silver chart, it replicates the downward price movement of gold. The charts suggest silver could move in a downward channel between levels of $15.50—$16.50 per ounce in the short term. However, a strong dollar will have a downward impact in commodities.

The RSI (or relative strength index) is in the oversold zone. Silver prices might rise due to these low levels of RSI. On the other side, MACD (or moving average convergence divergence) is showing that prices could fall lower.

Lower silver prices impact the margins of silver companies like Silvercorp Metals (SVM), Silver Wheaton Corp. (SLW), and Hecla Mining Company (HL). They also impact key silver ETFs such as the iShares Silver Trust (SLV) and the ProShares Ultra Silver ETF (AGQ).

For the latest updates, visit Market Realist’s Gold ETFs page.

Browse this series on Market Realist:

Advertisement