Silver is trading around the $62 mark, although a short period of time saw prices spike higher before losing steam.
The recent charts indicate the market is balanced; neither the buyers nor the sellers can dictate the market in the short term.
Silver consolidates from a bull market swing across several time frames. But momentum levels indicate that the recent uptrend is losing momentum amid price compression. This is usually an indication of a possible breakout period, but the direction is not known.
Silver Trades in Tight Intraday Range
The silver price on the 5-minute chart has been consolidating in a series of short periods of trading around the $62.20–$62.40 price zone before settling to a state of equilibrium around $62.30.
However, the analyst chart indicates buyers have taken up the lower swing moves in and around the $62.20 area so far, but each time attempting to regain the $62.40 level, it has been met with buyers’ resistance. These rejections come across after each other, indicating that the market has a hard time establishing significant momentum in either direction.
Price action continues to bounce around in the $62.20 area, a level that is the most recent support area that has been discussed during the session. If the price breaks below this range, it opens the way for lower liquidity areas, and if the price keeps trading above $62.40, it would be a confirmation of the short-term strength.
Momentum Signals Turn Neutral After Early Spike
A longer-term (30-minute) chart of XAG perpetuals depicts a more powerful rise, as the move was losing momentum.
The MACD is now nearing zero, as bullish momentum from the previous impulse has begun to wane. The histogram bars have also shrunk in this chart, suggesting that the market is less volatile than during the initial breakout attempt.
Meanwhile, RSI is holding in the middle 50’s, indicating the market is in neither an overbought nor an oversold state. This is consistent with the price chart, which has been trading sideways for a while now.
There is no clear breakout or directional move from the current consolidation, suggesting that silver might need a new catalyst to move.
Short-Term Structure Points to Range Expansion Ahead
The overall larger-scale chart that is typically reviewed by traders reveals that silver has found support after an earlier sell-off and is on the verge of making a steady rise. Even with this recovery, it is still imbalanced with the use of several failed attempts to create higher highs.
According to the TradingEconomics chart, the range seems to be narrowing in the market today within a certain intraday time frame, a phase that can also be followed by a volatility expansion. Traders are keeping a close watch on the price action to create more bullish continuation momentum above the $62.40–$62.50 region.
On the other hand, if support is not maintained, it may signal a return to previous lows, which were tested earlier this week and were found to be liquidity supported. So, for the moment, silver is in a neutral technical position. The price remains unchanged, the momentum has slowed down, and traders are waiting for a potential directional breakout.
Source: Original Article
