The bull run in silver which started to gather momentum in July 2020 and quickly moved from $18 97 to almost $30 in a space of 6 weeks, seems have run its course. A second attempt to breach the $30 level at the beginnng of February 2021 also failed. The reason for this change in sentiment is probably due to rising yields in the US treasury market. Rising interest rates could eventually ignite a downward spiral in equity markets and drag precious metals down in the process.
Current price level for silver is 24.10, trading 3.25% below the rising 40 week moving average of 24.91. The current technical picture portrays silver on the defensive. The next important level is $23.00 which is the Fibonacci 38.2% retracement from the high based on the entire 11.61 - 30.03 range covered since March 2020. A break here would put focus on $20.82 (Fibo 50%) and thereafter $18.64 (Fibo 61.8%). Should the $23 level hold, we would expect a long period of consolidation before significant upside fantasy becomes reality.
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