Silver's 5-hour chart has printed a new low at $54.655 after breaking through support levels. Indicators read oversold, but the chart still points to a downtrend with room to accelerate.
Silver's 5-hour chart just hit a new low at $54.655, with momentum breaking through every major support. The article describes the metal as oversold but still dangerous, because a short-term bounce competes with the risk of further downside.
Price sits below the lower Bollinger Band
The metal trades below the lower Bollinger Band at $55.22 and well under its 20-period moving average. Those readings are signals of short-term exhaustion, not safety. Meanwhile, RSI stands at 29.2, an oversold reading.
The chart also shows a bear flag breakdown. The source says it was confirmed at $60.00 and has handed bears control.
Momentum indicators stay bearish
The SuperTrend remains bearish at $57.28. Likewise, the MACD shows no move toward recovery, and bearish momentum is accelerating.
A recent bearish Marubozu candle closed at $54.69, right at the low. The source reads it as aggressive, conviction-driven selling, with no lower wick and no buying back yet.
Levels the source watches
The source lists $54.70 to $56.40 as a no-trade zone where both sides risk being whipped out. On the downside, it lists targets of $54.00, $52.50 and $50.00. For bulls, it calls waiting for a 5-hour close above $57.50 the safer, though still contrarian, approach.
The source adds that intense volume on the recent breakdown adds conviction.
Source: Investing.com
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