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.
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.