Are you interested in learning more about the current trend in silver and how it could impact your investment decisions? Look no further than our latest analysis of the descending ABCD pattern in play.
Last week’s swing high of 29.18 has set up a potential descending ABCD pattern, signaling a bearish continuation if there is a drop below last week’s low of 27.69. As the AB and CD legs of the pattern achieve symmetry, the likelihood of a pullback increases, with the target pinpointing a significant pivot point that could lead to a breakthrough and a move to the next lower support zone.
Furthermore, recent price behavior is indicating a short-term bearish trend, with the 27.31 target marking the initial completion of the ABCD pattern. Resistance was also observed at the 50-Day MA during the last week’s swing high, reinforcing the bearish sentiment.
The 27.91 target is reinforced by the 78.6% retracement, with potential support at the 27.27 level. Keep an eye on the internal uptrend line as well for possible support on the way down.
Looking ahead, the 200-Day MA at 26.67 presents critical support for silver. Fibonacci confluence in this area creates a price zone from 26.81 to 26.67 that could act as a support level if silver continues to decline. A successful test of the 200-Day MA as support could be crucial for the larger advance in silver, as it has not been tested since breaking out above it on March 4.
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