Despite the sharp fall since last week, silver is still hanging in there in July trading. On the month itself, the precious metal is now down by 0.3% after erasing its monthly gains in the last five trading days. Price is now currently trading around $29.05, down 0.4% on the day. Still, buyers are not completely down for the count just yet.
The low today hit $28.67 and that calls into question the June lows at the $28.57-65 region. For now, that is still largely holding but a break below that will be a massive blow to the upside momentum since March.
We’ve already cut back on half of the gains since the surge higher in May and a break below the supportive region above will draw more interest from other key support levels.
The 61.8 Fib retracement level at $28.50 is one to watch, alongside the 100-day moving average (red line) at $28.35 currently.
A technical break below the latter especially will give sellers more momentum to drive a deeper correction in silver next.
As things stand, commodity metals haven’t been enjoying a good month from a technical perspective. Copper is also one that is breaking down further ahead of what is typically its worst seasonal performance in August.
This article was written by Justin Low at www.forexlive.com.
