Silver trades below its 20-, 50- and 200-period averages, and an Oct 26 doji at the lows hints at possible exhaustion. Oversold readings are described as ripe for mean reversion, but SuperTrend resistance is intact. Investing.com's technical read puts the invalidation levels at $53.07 and $56.05.
Silver sits at $53.91 and trades below SMA(20), SMA(50) and SMA(200), which the analysis describes as full bearish trend alignment. The main risk, it says, is shorting into extreme oversold conditions versus catching a falling knife with a premature long.
The SuperTrend indicator is bearish at $56.04, and MACD at -1.07 sits below its signal line at -0.95. A descending channel is active.
Oversold readings back the bulls
The bullish case rests on exhaustion signals. RSI stands at 26.92 and MFI at 9.07, and price sits near the lower Bollinger Band at $52.32. A doji is a candle that signals indecision. This one formed at $53.91 on Oct 26, which the analysis reads as indecision at recent lows and potential exhaustion.
Volume is declining, and the analysis finds no confirmed divergences. It sets bull invalidation at $56.05 and bear invalidation at $53.07.
Levels traders are watching
The analysis marks a long zone at $53.00-$53.50, near the recent swing low, and a short zone at $55.75-$56.05, where the 20-period moving average and SuperTrend meet. It labels $53.50-$55.75 a no-trade chop zone.
For bears, targets sit at $52.00, $50.00 and $48.16, the last being the 127.2% Fibonacci extension. For bulls, the targets are $56.00, $57.15 and $59.98, the 38.2% Fibonacci retracement. The analysis rates bear confidence at medium and bull confidence at low. It calls the bear setup near $55.75-$56.05 optimal now because the trend is dominant.
Source: Investing.com
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