Silver has incurred its worst losing streak since 1983 as the coronavirus disrupts the global economy and impacts demand for silver, which is often referred to as white gold.
Silver price technical analysis shows that a bearish breakout from a large falling wedge pattern will occur if sellers hold the price below the $12.00 level.
Silver medium-term price trend
Silver is trading down by over 30 per cent from its 2020 price peak, as metals are increasingly being shunned by investors.
Weakening industrial demand is also hurting silver prices, as the metal is often used for jewellery, solar panels and electronic components.
Silver technical analysis over the medium-term shows that a bearish breakout below a large falling wedge pattern could trigger heavy technical selling.
The daily time frame shows that the bottom of the falling wedge pattern is seen around the $12.00 level. According to the size of the pattern, a bearish breakout could see silver heading towards the $8.00 level.
Looking at the daily time frame, the January 2016 swing-low, around the $13.65 level, is now former support turned resistance and a possible area that sellers may look to enter into the bearish trend.
Silver short-term price trend
Silver price analysis over the short term shows that bears are in control while price continues to trade below the $16.00 technical level.
The lower time frames currently show that price is trapped within a triangle pattern, and an explosive directional move should be forthcoming.
According to the size of the pattern, a loss of the $11.90 level could see the silver price testing the $10.90 and possibly the $10.60 level in the short term.
To the upside, a bullish breakout above the $13.30 level may provoke a test of the $14.50 level. It is certainly noteworthy that the trend is heavily bearish and rallies may be sold heavily.
Silver technical summary
Silver price technical analysis highlights that a major bearish breakout could occur if sellers gain traction below the $12.00 to $11.90 area. The implied near-term bearish targets for silver are found at the $10.90 and $10.60 levels.