Silver Prices Slide Lower- Support Targets View
New York (April 20) Technical Outlook: Silver prices have continued to trade within the confines of an impressive, well-defined ascending pitchfork formation extending off the November / December lows. The precious metal failed to hold above key resistance this week on building bearish divergence at 18.33/37 – a region defined by the 50% retracement of the July decline & the 100% extension of the ascent off the December lows. The pullback is now testing a key near-term support just below the 18-handle where the 200-day moving average converges on the 50-line of the ascending slope formation.
Notes: A closer look at price action highlights this near-term slope convergence and heading into the close of Europe the risk remains for a near-term rebound off this mark. That said, the broader focus remains weighted to the topside while above 17.51 with a breach / close above 18.37 needed to validate resumption of the uptrend. Subsequent topside objectives are eyed at 18.58, the 50-line (currently ~18.80) & the 61.8% retracement at 19.03.