by Craig Hemke, Sprott Money:
It has been six weeks since the start of the Iran War, and those six weeks have certainly taken a toll on gold and silver prices. However, from a longer-term perspective, the silver price is holding firm at 50% above its old all-time highs, and that’s a noteworthy development. You can track ongoing movements using live spot price charts.
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Short Term Silver Price Volatility And Technical Indicators
Yes, in the short term, it has been a difficult adjustment after the price peak in January. Did the silver price get overextended and parabolic to begin the year? With the benefit of hindsight, it appears so, and the pullback from the late January highs has been hard to watch at times. After rallying nearly $50 to start the year, price is now up just $1.50 year-to-date.
Silver – Daily Candlestick Chart
For deeper insight, review the latest spot silver price chart.
But having retraced all of the January gains, is there reason for optimism and a bottom? Let’s add some technical indicators to the chart and see what we find. To me, two things stand out: Price has yet to make it down to its 200-day moving average AND it has recently broken through its primary short-term downtrend that stretches back to the late January highs.
Silver – Daily Candlestick Chart
Silver Support Levels And Weekly Chart Signals
That’s all very interesting in the short term. However, it’s the longer-term charts that reveal the underlying trend and bull or bear market. The weekly chart of the spot price shows the current downtrend but also reveals important support near $65. A breakout to the upside (as seen on the May26 futures chart above) would be positive. A weekly close below $65 would suggest that a test of $55 could be pending. As such, this is somewhat inconclusive.
