Silver Intraday Downside Correction Not Yet Done

Spot silver plummeted nearly 15% on Tuesday and despite a 2.9% rebound yesterday, it becomes more clear that investors are taking profit as price had nearly tripled from March's low. 

DoubleLine Capital CEO Gundlach, the "bond king", said even he believes gold price (silver's peer) will go higher in the long-term, but calls for "short-term reversals as a general theme in markets".

From a technical point of view, on the 1-hour chart, spot silver remains on the downside after breaking below a bullish channel drawn from July 20. The level at $27.85, which is the 61.8% Fibonacci retracement level of the most recent decline, might be considered as the nearest resistance. The 1st and 2nd supports are expected to be located at $23.00 and $20.75 respectively. Alternatively, a break above $27.85 would suggest that the next resistance at $29.85 may be challenged again.

Source: TradingView, Gain Capital
Related tags: Silver Commodities

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