SILVER prices in the second half of last month after the barrier test at 15.60 were consolidated in a narrow range, where the EMA 10/20 averages channel worked well as a dynamic resistance.
However, as can be seen in the daily chart below, the sellers made a significant progress this week, on Monday there was a breakout from the range and breaking the support at 15.16. An even bigger sell of took place during yesterday’s session, which closed significantly under horizontal 14.65.
I trade on this instrument at broker XM, which has in its offer more than 300 other assets >>
The continuation of the downward trend may now lead to seeking sell opportunities. However, it is not worth catching a falling knife, but rather focusing on sell after a rebound.
An interesting location for such a scenario may be the mentioned EMA 10/20 channel, which works well in the role of resistance since the second half of June. The next key support will be at the round level of 14.00.
