Today, silver prices (XAGUSD), slid as the US trading session started on what appears to be profit-taking following the last few day’s price surge. After reaching a new yearly high of $19.64 on September 4, silver price declined by 11.28 percent to reach a low of $17.39 on September 13. Prices have since then turned the corner and earlier today silver prices were up by 7.87% from the September 13 low.
As the trend is now short-term upwards above the September 13 low at $17.39, traders will probably try to buy dips in the price, keeping it supported. I suspect support in the silver might kick in around the $18.04 level as it is the 50% correction level of the rally from 17.38 low to this week’s high of $18.74. If the price indeed turns higher from support, then traders will probably target this week’s high of 18.74, followed by the September high at $19.64. The long-term trend is also bullish which should further support the price. However, on the price trading below the September 13 low of $17.38, the short-term trend would no longer be upwards, and traders will probably target the next support level, the August 19 low of $16.83.
For our outlook on gold prices read: XAUUSD: Gold Prices Consolidate Above $1500
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