Silver - under pressure but oversold

by Tim Straiton
Friday 10th December 2021

The current price is 21.86 and trading 14% below the falling 200 day moving average of 24.98. The 14 day relative strength index is now in oversold territory at 28.96%.  The price has broken below the the Fibonacci 38.2% retracement level of 22.28 based on the 12.58 to 28.29 weekly close range seen between 20th March 2020 and the 7th August 2020. Support is seen at the 50% retracement level of 20.43 and thereafter at the 61.8% retracemet level of 18.58.

The current negative market environment in silver can also be seen in the strong upward trend in the Gold/Silver ratio, currently at 80.73. Potential buyers of silver should wait for a clear turn-around in the Gold/Silver ratio before assuming long positions.


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