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In recent market developments, we are Analyzing Fibonacci Patterns os silver’s decline. It is seen that there is a strong upward trend that has encountered a setback, causing concerns among traders. A notable bearish inverted hammer candlestick pattern has emerged on the weekly chart. Alongside a decline below last week’s lowest point. These indicators are raising alarms about an increase in selling pressure.
Just last week, silver reached an impressive peak of $25.00, marking a significant milestone in its performance. However, this high was followed by an 88.6% Analyzing Fibonacci Patterns retracement, signaling a corrective phase for the precious metal. During its upward journey, silver briefly managed to close above the internal downtrend line, sparking optimism among investors. Unfortunately, this optimism proved short-lived, as silver slipped back below the trendline last Thursday.
Analyzing Fibonacci Patterns
Based on the latest trading data, silver appears poised to complete a retracement to the 38.2% Fibonacci level. Currently standing at $23.93 according to the reports. The lowest recorded price today stands at $23.95, with silver continuing to trade. Despite the potential rebound to $23.93, the bearish pattern on the weekly chart suggests that silver’s retracement may deepen in the near term.
Weekly Bearish Signals Heighten Selling Pressure
Examining the weekly chart, it becomes evident that a bearish inverted hammer candlestick pattern was finalized last week. Today, a bearish signal was triggered as silver dropped below last week’s low of $24.03, confirming the growing selling pressure. Employing Fibonacci ratio analysis, the next likely target range for silver lies between $23.67 and $23.00. This range encompasses a previous weekly high and the 50% retracement, respectively. Following this zone, there is another range from approximately $23.27 to $23.17 This includes the 61.8% retracement level at $23.27. However, the 200-day EMA at $23.23, and a weekly low at $23.17.
Key Support Levels to Watch During the Correction
After experiencing a retracement low of $22.21 just three weeks ago, silver made a remarkable recovery, surging above both the long-term uptrend line and the 200-Day EMA to sustain its upward momentum. As silver retraces from last week’s peak, these two lines become critical areas Analyzing Fibonacci Patterns to monitor for potential support. Additionally, the $22.81 price zone, where two trendlines intersect and marked by a purple line on the chart, represents a significant lower boundary.
Positive Signals on the Monthly Chart
Taking a more extended view on the monthly chart, there are indications that silver may have further room for upside potential. Over the past several months, silver has tested and held above the 34-Month EMA. The candle pattern from the previous month even presents a bullish hammer. While this pattern typically signifies a continuation rather than a reversal, it remains an encouraging sign. A decisive rally above last week’s high of $2.02 would activate a monthly bullish signal for silver.
As the silver market responds to these developments, both traders and investors will closely monitor evolving patterns and potential support levels in the days and weeks ahead.
