The silver market has recently lost value rapidly and dropped below $70. The fluctuations seen in financial markets in February and March are of particular concern to investors trading on international stock exchanges. Among precious metals, silver has historically stood out as a preferred tool for investors to diversify their portfolios.
Hard Selling in Silver in the Short Term Draws Attention
In the transactions that took place on March 21, the XAG/USD parity decreased by approximately seven percent, closing the day at $67.79. The silver price, which was above $70 at the beginning of the day, decreased significantly with sales that continued until the end of the day. It was seen that sellers maintained their pressure with high transaction volume throughout the session.
While the loss of nearly 15 percent in value in a week and 19 percent in a month is noteworthy; The fact that the price increased by 57 percent and 105 percent in the last six months and one year, respectively, shows that the trend is still up in the long term. However, it is stated that the sharp withdrawal in such a short time also significantly affected the perception in the market.
Technical Data and Annual Charts Reveal the Change in the Market
When examined on an annual basis, it was seen that silver decreased to $ 67.59 on the Trading Economics platform. The rise, which started around $30 in the last 12 months, reached over $110 in recent months. The price experienced a rapid decline from the peak and fell below $ 70 again as of March.
Looking at the charts, it was understood that after this depreciation, the price fluctuated for a while with attempts to recover, but again fell to the current band with a downward movement. Especially in the last movement, the price fell to the lower limit of the recent trading range, causing the risk perception in the market to change.
The biggest impact of these developments for investors was that those who took positions during the last rise are now facing losses. On the other hand, it is thought that the fluctuation in silver may also affect the interest in other precious metals such as gold.
Technical Indicators Confirm Market Pressure
In the analysis of Bollinger Bands, it was seen that the upper band was at $95.61, the middle band was at $83.50 and the lower band was at $71.38. The fact that silver fell below the lower band indicated that it had technically entered the oversold zone and the selling pressure was getting stronger. It was understood that the market was far outside its usual level in the short term and investors were looking for a new balance at this point.
According to the daily chart published by TradingView, silver opened at $73.26 and fell to a low of $67.69. The closing price was recorded as $67.91, and there was a significant loss of over six percent during the day. The transaction volume exceeding 657 thousand showed that intense participation supported the sales wave.
It is observed that the negative outlook continues in MACD indicators. Reading the MACD and signal lines and the values on the histogram indicate that the downward trend continues. Experts suggest that technically the new support level will be $67.69 and resistance will be $71.38.
