The current price movement of XAGUSD, SLV, and Silver Mines Limited indicates declining momentum and narrowing trading bands. As the silver market has had a fast increase, followed by a drastic decline.
The stabilization in prices following sharp falls is now being concentrated on by participants in the market in terms of clear support and resistance levels.
XAGUSD Retreats Following Parabolic Rally on 4-Hour Chart
A recent X-based post recently pointed out the recent XAGUSD move as speechless. The comment came after a sharp multi-month improvement, which culminated in a sharp turn. In addition, the 4-hour chart shows a definite blow-off top that was labeled wave number 5, and then it started to drop.
Silver reacted by almost half of the parabolic climb into a highly volatile consolidation. Source: X by Market Rebellion
The price fell almost half in a few days down to the local high. The relocation wiped out a big percentage of the gains of the past. Unstable trading conditions are observed in long upper wicks and wide candles. The sudden downfall indicates profit grabbing and forced sale following the vertical increase.
Price has now shifted into a range as indicated by the chart. The horizontal midpoint serves as a level of balance. Control is being tried at this zone by buyers and sellers. In the event that the price retains a point above the median, it can still recover to a high boundary.
SLV Compresses Between $67 and $72 Resistance
Still another analyst stated that there is compression exercised by $SLV around a critical level. The fund was trading around at the price of at least $67.73, and the fund dropped by approximately 1.15 percent during the session. It has just been trading near a high of about 75.75 and then turned downwards.
The pullback is a drop of about 10% to 11% from the recent peak. The price is also testing in between $67 and $68. The structure depicts a flattened bottom with a bottom of around $67 and an upper boundary that is declining at around $75. This becomes a narrowing set.
Silver was rejected at the mark of the $75.75 peak; $SLV is squeezing on $67 support and the $72 resistance. Source: X by Cheds Trading
Repeated unsuccessful attempts at reclaiming the $70 to $72 region affirm resistance in the near future. Each bounce towards that zone has seen the emergence of sellers. The breakdown of these volumes was greater than at the level of $75, and this means that it was actively involved in the decline.
The price of $67 is still the focus of the short-term perspective. Any decisive lowering would open the way up to $63 to $65. On the positive side, any increase that goes above $70 will swing to change the momentum back to $72 and maybe $75. In the meantime, price is contained within set areas of support and resistance.
Silver Mines Limited Trades around A$0.210 Support
Silver Mines Limited (ASX: SVL) ended at $0.215 on the daily scale. The share declined by $0.015, or 6.52%, in the session. It had an opening price of $0.220 and a high price of $0.225, then fell to $0.210.
The trading range was also small at $0.015, but selling was more at the end of the day. The short-term resistance is the $0.220 to $0.225 zone. In the meantime, consumers tried to protect the positions slightly above $0.210. Volume was recorded at 11.19 million shares, and this has been actively traded.
Silver Mines Limited (ASX:SVL) is listed at close to $0.215, with the momentum dropping below $0.225 resistance. Source: TradingView
In the previous month, February, it also traded in a range of $0.270-$0.280 and then turned downwards. That area has become medium-range resistance. The recent price movement is above the psychological $0.200 point marginally.
The technical indicators indicate a declining momentum. The MACD (12,26,9) shows a negative histogram of -.003. The MACD line is lower than the signal line. The RSI (14) is 46.41; that is, below the neutral 50 level. These readings are pointing to weak short-term strength as price is in the range.
Volatility in the silver markets across silver markets has been on the rise after severe corrections. Price consolidation is still being experienced, with traders keeping an eye on key areas of support and resistance.