Silver at a key technical area

5:17 PM August 8, 2022

Silver is currently testing a very important area. This is the 50-day moving average and the range of the largest correction in the trend. Silver is already above the retracement of 23.6 of the last downward wave, but at the same time we are observing a resistance zone associated with the local low from May. 

It is worth noting that when we had the previous death cross, silver began to rebound after about a month and 20 days. Overcoming the 50-period moving average led to testing the 200-period moving average. Theoretically, we already have approx. 12% bounce from the bottom and a potential of 12% from the current level to test the 200-period average. An important factor for Silver is the positioning rebound and fairly stable seasonality. On the other hand, the recent powerful rise in yields may hurt bullion. 

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Source: xStation5

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