- Silver is trading 13.7% lower on Tuesday as the rout on precious metals continues.
- USD 25 per troy ounce could be an important support level to watch.
Silver 1-hour chart
The precious metals have had a tough session. Gold is 5.14% lower, platinum 4.48% in the red and silver is the major laggard down 13.7%. There has been some interesting moves in the macro markets too. 30-year treasury bond yields have risen 5%, which is a big move and stocks have reversed after being higher earlier in the session.
Looking at the hourly chart, the price bounced off the USD 25 per ounce support area. There could be a retest of the green trend line that was broken earlier in the session and that would mean a small retracement is on the cards. The next resistance level on the way up is at the USD 26 per ounce psychological level and if the bulls grab hold of the market again then the next is the purple horizontal line at USD 27.50 per ounce.
The indicators are understandably bearish. The Relative Strength Index is in a very depressed zone and this could mean a small pullback is on the cards. The MACD histogram is firmly in the red and the signal lines are extending below the mid-point.
Overall on the higher timeframes, the price is still in an uptrend but this kind of retracement cannot be ignored. The bulls will be waiting to see if the price can find some support at the aforementioned levels. One bullish sign would be if USD 27.50 per ounce can be retaken. If not then this could be a more sustained reversal.