Silver Forecast Video for 12.12.23 by Bruce Powers
Silver continued to retrace its prior advance today, reaching a new trend low of 22.70. That low is at a potential support area defined by both the internal uptrend line and the 78.6% Fibonacci retracement at 22.73. Today is the sixth straight day of declines in silver. Could today’s low be the end of the correction?
Might Today’s Low Complete the Retracement?
It is possible that today’s low might be the bottom of the retracement. There are two indicators pointing to support near the low and the decline stopped in the support zone leading to an intraday bounce. If today’s support continues to hold, a bullish signal will be indicated on an advance above today’s high of 23.09. Potential resistance is also at the 50-Day MA (purple) at 23.08. Therefore, a rise above today’s high will also put silver back above its 50-Day line, providing an additional sign of strengthening.
Bounces into Resistance
Key resistance levels are around the prior swing high at 23.68. You can see how the area around that swing high led to consolidation for five days in November following the November 13 retracement low. Also, support was seen for one day on the way back down recently. Higher up is potential resistance around the 21-Day MA at 23.92, followed by a weekly level around 24.23.
Downward Pressure Remains Dominant
Regardless of the potential for a rally off today’s low, there are no signs of it yet. Silver has been coming down hard and barely hesitated before breaking below all potential support levels up until today. This behavior leaves support levels suspect. If a decline below today’s low of 22.70 triggers the likely target is another test of support at the long-term downtrend line (darker blue). Today it is around 22.45 or so. A little lower is the intersection of two trend lines at 22.32. Both the long-term downtrend and uptrend lines cross at that point. It should mark the maximum decline for the retracement.
Bruce boasts over 20 years in financial markets, holding senior roles such as Head of Trading Strategy at Relentless 13 Capital and Corporate Advisor at Chronos Futures. A CMT® charter holder and MBA in Finance, he's a renowned analyst and media figure, appearing on 150+ TV business shows.