Last week, silver prices attempted to return to their October highs but failed to hold onto these levels. As was the case a month ago, buyer activity waned significantly above the $53.5 threshold, while sellers became more agitated, pulling quotes back toward $50. The daily chart showed signs of a “double top” pattern, suggesting silver might return to the neckline in the $46–$48 range.
While the Stochastic lines have already generated a sell signal, the RSI is only at the beginning of its downward reversal. Current conditions appear favorable for opening short positions, but caution is advised as the price approaches the 50-day exponential moving average (EMA50). Since the end of May, this line has successfully limited the scale of silver’s declines, notably halting downward momentum in late October. As a result, bears may start taking profits before the price even touches the EMA50.
Along with the “double top” emerging on the chart, the gold-silver ratio has formed the opposite pattern—a “double bottom”—after falling below 80 to hit its lowest point since summer 2024. Naturally, this does not guarantee that silver will underperform gold, but it is gold that is now capturing most of the investor attention.
This week, the US is set to resume economic data releases following the prolonged government shutdown. Traders will primarily focus on the labor market statistics for September, scheduled to be published on Thursday. With investor expectations being extremely low, even average figures could strengthen the greenback and trigger a sell-off in commodities. In addition, the likelihood of a December interest rate cut by the Federal Reserve (Fed) has fallen below 50%, which also weighs on silver and other dollar-denominated goods.
Take into account the trading plan presented down below:
Sell silver at the current price, with Take profit at $47 and Stop loss at $53.5.
This content is for informational purposes only and is not intended to be investing advice.
