- Silver is finding key support on the daily chart.
- The bears need to break the structure while the bulls need to break through the resistance of the trend line.
The price of Silver has run into a key daily support zone which leaves the bullish bias for the short term. This is illustrated below along with the market structure and various scenarios for the foreseeable future.
XAG/USD daily chart
Silver is at the front end of the downtrend, but price has run into a zone of potential demand that could cause bears to throw in the towel.
The above scenario, however, shows a bearish bias with the trend line resistance playing its part in the sell-off below the market structure.
On the other hand, the market has strongly picked up bearish momentum and is breaking above the 50% mean reversion level. The break of the resistance trend line leaves the bullish bias intact. However, that is not to say that the bears will not try to sell at a premium, which could send the price retesting the recent lows, as its shape structure is in an accumulation phase.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
