Silver gave up its gains from yesterday, dropping towards $57 per ounce overnight. It has recovered a touch this morning and continues to trade around a mild area of support, which stretches down to $55.50 at its lower end. This area acted as resistance in early December last year, and silver has managed to cling on above here during this latest selloff.
The precious metal remains very oversold according to its daily MACD, so a rebound can’t be ruled out. But if it were to make a protracted break of current support, then the charts suggest that it could drop back to $54 or thereabouts. Like gold, the silver bulls aren’t getting any help from the stronger US dollar.
Source: TN Trader
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