SILVER : Price Action

(Wed, 3 Feb 2021). Silver prices continue to slide after the precious metal saw price action push into a wall of resistance at the key psychological level of 30.00. As traders drove prices higher, tick volume increased to it’s highest level since August 2020, validating the strength of the breakout.

A retest of August 2020 highs resulted in a double-top formation, above the key level of resistance, currently formed by the 50% Fibonacci retracement level of the historical move (2008 low – 2011 high) at 2906. Price action currently remains well-above trendline support, with the Relative Strength Index (RSI) falling below the 70 level, a potential indication that price action is back within range.

For now, support potential remains around the key psychological level of 2500 with the 61.8% Fibonacci retracement level providing additional support at 2416.9

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