Selling silver with $72 in sight

This week, silver prices slumped to the $72–$85 range, triggered by the current technical setup and the heated Middle East situation. Let’s take a closer look at the chart to analyze the trajectory of the momentum indicators. Right now, there are signs of further downside movement.

1. Price consolidation at $85

A recent breakout of the important support level, followed by a retest of this threshold was the first and most substantial sign of a looming downtrend.

2. RSI below 50 points

Once silver quotes settled firmly below support, the Relative Strength Index (RSI) entered bearish territory beneath the 50 threshold. This is another factor confirming sellers’ dominance in the market.

3. MACD negative values

The Moving Average Convergence/Divergence (MACD) is also in the red. The last two times the metal entered bearish territory, prices hit $72. Therefore, this level could be the next target for sellers.

The final recommendation:

— Sell silver at the current price, targeting $72 within the next two weeks;

— Place Stop Loss above the channel’s upper boundary at $87.