Silver Prices Edge Lower, Trapped Under Trendline

• Silver remains in a downtrend, after recovery runs out of fuel
• Prices trading below trendline and key moving averages
• Break above 23.60 or below 22.20 could signal next move

Silver prices remain trapped in a downtrend, with a clear structure of lower highs and lower lows in place since May. The market is also trading below a trendline drawn from the May peak, as well as below the 50- and 200-day simple moving averages (SMAs), all of which suggests that the technical outlook is negative. 

That said, momentum oscillators point to some stabilization in the market. The RSI is slightly below 50 but seems to be flattening, while the MACD is near its neutral levels, almost painting a picture of a directionless market.

Another wave of selling could bring the 22.20 region back into play. This obstacle halted several selloffs this year, so it’s quite important. If sellers manage to pierce through it, then the next major battle could take place near the October low of 20.65.

On the other hand, if buyers manage to regain control, the first resistance barrier for them to overcome might be the 23.60 area. The downtrend line is just above and can be considered part of the same area. A successful break could see scope for further upside extensions towards 24.30, which has served both as resistance and support this year.

Summarizing, the broader picture seems negative as long as the downtrend line remains valid.