Silver is trading near the 22.300 mark as of this morning and it continues to offer traders an opportunity to test what has become rather bone-chilling volatility in a bearish manner. On the 17th of September, the commodity was trading slightly above 23.000, but silver has incrementally been sold off in the past week-and-a-half. Speculators who were expecting a quick reversal off the long-term lows may be experiencing headwinds within their trading accounts if they had targets which sought fast moves higher.
Timeframe perspectives will need to be contemplated carefully, including the use of leverage when undertaking a long position with silver. Prices near 22.200 have been tested recently and the last time silver traded within these vicinities was in late November of 2020. In September and July of last year, silver also flirted with these lower values.
Silver climbed out of its lower price range on the 20th of July 2020 when it went from essentially 19.220 to above 22.000 in one quick strike, and please note that was over a year ago. Silver traded slightly above 30.000 on the 1st of February this year. However, after faltering to about the 23.700 mark in late March and then attaining a high of about 28.800 on the 10th of May, silver has incrementally found it difficult to advance higher and resistance levels have incrementally lowered.
Bearish traders who believe silver can break through current support and test lower values may be proven right in the near term, but they need to make sure their risk-taking tactics are working at all times. If silver falls through the 22.250 support level and challenges the 22.150 juncture there is reason to suspect the commodity could actually test values below 22.000 in the short term. Volatility is certain to be seen as silver flirts with long-term lows.
Speculators who technically suspect that a climb higher must emerge may be right long term, but predicting when the reversal of the trend is going to take hold is proving problematic. Bullish traders who want to buy silver because they believe the commodity has been oversold may want to wait for additional selling and a test of lower support levels, or at least strong consolidation, before igniting their buying positions which seek upwards movement.
Silver Short-Term Outlook
Current Resistance: 22.600
Current Support: 22.250
High Target: 23.070
Low Target: 21.850