Silver Price Analysis: Closes in on key support, uptrend still intact
- Silver has corrected back to key support near $30.00.
- It will probably steady and resume its uptrend in time.
- A decisive break below the $30.00 level would reverse the trend and usher in more bearishness.
Silver (XAG/USD) corrects back after peaking at the $32.51 high of May 19. It is close to a major support level at $30.00, the top of a four-year consolidation range.
Silver 4-hour Chart
Despite the correction, the short-term trend is still probably bullish, which given the saying “the trend is your friend” favors long positions over shorts.
If Silver pulls back any lower it will probably find support at the $30.00 level of the former range highs. From there it is likely to rebound and resume its uptrend, probably climbing back up to retouch the $32.51 high, then possibly surpassing it. However, there are no signs yet from price action that this is happening.
It would require a decisive break below the $30.00 level to bring into doubt the dominant uptrend.
A decisive break would be one accompanied by a long red candlestick that closed near its lows or three red candlesticks in a row.