Silver finished this week lower by 4.5% as weakness continues for gold’s little brother.
Dollar has flexed its muscle causing precious metals to falter.
However, this weakness would be no surprise for Trading Price Newsletter subscribers.
Silver Price Analysis for March 5, 2021
(click on image to enlarge)
Last week, we said silver’s price channel suggests weak trend strength. More specifically, to keep an eye on the mid-line of the price channel for silver. You see, silver was camped below the mid-line which implies the trend is weak. The inability to rally to relative strength is an obvious way to see weakness.
“A price break below $26.07 means silver futures would have broken below the price channel AND broken below the February 18 low.”
On March 2, silver futures did briefly penetrate this level signaling the potential for deeper losses. Today, silver prices reached a low of $24.84 as the trend is not firmly to the downside.
What is the Silver Price Forecast?
Continue to look for a series of lower highs and lower lows in silver. Using the Fibonacci extension tool, a couple wave relationships are showing up at $21.01, $22.07 and $23.12.
Couple those key levels with the previous minor low of November 30, 2020 near $22 and we have some support levels forming in the $21 to $23 range. The strongest of these levels is the $22 figure.
This doesn’t mean that we want to buy silver at these levels. This simply means the downtrend is firmly in force and the next reaction may appear in this $21-23 range.
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