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Silver prices could break the support of $15.50 per ounce

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Silver prices declined

Silver futures contracts show the emergence of a diamond pattern within the downward channel. Prices settled just above the important support level on March 9, 2016. Silver prices declined due to a strong dollar and heavy selling from traders on sluggish demand.

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Support level for silver

The April futures for silver might test the next key support of $15.50 per ounce. Prices hit this level in November 2014. Market conditions are very negative for precious metals—like gold and silver. On the upside, traders could see resistance levels of $16.50 per ounce. The resistance is established by prices hitting this mark many times in February.

The gold and silver price charts are in downward price channels. Based on the silver price chart, prices could trade between levels of $15.50–$16.50 per ounce in the near term. Bears will be eyeing a dollar rise for another drop in the precious metals’ prices.

The RSI (relative strength index) and MACD (moving average convergence divergence) suggest that prices could move in the downward trending channel.

The fall in silver prices impacts silver ETFs like the iShares Silver Trust (SLV) and the ProShares Ultra Silver ETF (AGQ). It also impacts silver companies’ profitability—like First Majestic Silver Corp. (AG), Silver Wheaton Corp. (SLW), and Hecla Mining Company (HL).

For the latest updates, visit Market Realist’s Gold ETFs page.

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