Silver’s Rollercoaster Week Faces Critical Support Challenge
01 November 2024
Silver has been navigating through significant volatility this week, starting on a strong note before encountering a sharp bearish reversal over the past two days. This drop isn’t exclusive to silver; gold has shown similar patterns. Currently, silver is at a crucial juncture, testing a key horizontal support level at $32.4, marked in red. This support has historically been pivotal, making its hold essential for maintaining a positive sentiment.
Adding to the bullish argument, silver remains above a black uptrend line, reinforcing the idea that upward momentum is still possible. As long as prices stay above both the red support and the black uptrend line, the sentiment remains skewed towards optimism and further potential rises. However, should today’s price action result in a close below this critical $32.4 support, it would signal a strong bearish reversal and a potential trigger for short positions. For now, the bias remains positive as long as these support levels hold firm.