According to Boz, silver is likely to make a significant move soon. His analysis shows it’s nearing a key support level, and the gold-to-silver ratio is approaching a potential resistance area.
Silver Price Holds Lower Channel Support
Since February, silver prices have been moving within a significant downward trend. There have been several attempts to recover, starting near the lowest point of this trend.
The price recently dropped to $54.20, which acted as a support level. While it has since recovered somewhat, the price is still near the bottom of its current upward trend. This support level is clearly visible on the chart as a horizontal line.
The Relative Strength Index (RSI) is currently at 38.14, with its signal line slightly lower at 37.08. Because the RSI remains below 50, silver’s upward momentum has weakened. However, the two lines recently crossed, suggesting that selling pressure is easing as it approaches a support level.
Silver prices are currently below their 200-day moving average, which sits at $69.73. To start a significant price increase, silver needs to overcome a couple of important resistance levels. The first key area to watch is between $59 and $60, as previous attempts to rise have stalled there. If silver can break above $59-$60 and hold that level, it could then challenge the $63.30 resistance.
MCO Global believes silver might be nearing the end of its recent price decline, with $63.30 being a key level to watch. If the price rises above $63.30, it could suggest the lowest price has been reached and silver could start to climb again, potentially heading towards $66.
The price is likely to face significant resistance around $69-$70, as this is where the 200-day moving average currently sits. According to forecasts, the price is heading towards the $68-$70 area, a zone marked by several key indicators: an upward trendline starting from the May low, a downward sloping channel line, and that important long-term moving average.
Silver Downside Risk Remains Near $52
Silver hasn’t yet surpassed the downward trendline connecting its highs in May and June. If it fails to break through and instead falls back from the nearest resistance level, it could drop to $54.20. A daily close below that price could lead to further declines, according to MCO Global.
MCO Global suggests silver prices could fall to between $52 and $49, potentially marking the end of a current price correction. Technical analysis, specifically Fibonacci levels, indicates initial support around $52.54, with further support levels identified near $48.88 and $46.41.
The price will either bounce back up if it stays above $54.20, suggesting a potential recovery, or fall further if it drops below that point, continuing the existing downward trend. Breaking through $63.30 could signal a shift in the short-term market pattern.
Gold Silver Ratio Reaches the 72.62 Barrier
The gold-silver ratio ended the last trading session near 70.57, down about 1.72%. It recently tested a resistance level around 72.62. A rising ratio indicates gold is increasing in value faster than silver, while a falling ratio means silver is performing better than gold.
According to Boz’s analysis, the ratio between gold and silver prices has been increasing since hitting a low of 52.89 in May. Since the start of summer, the price has surpassed several downward trends, establishing new peaks. A clear upward trendline can be drawn connecting the lowest points from May and July.
The price could continue to rise and potentially test the 72.62 level again. But yesterday’s price action suggests that level might act as a barrier to further gains.
The Relative Strength Index (RSI) has decreased from its recent peak and is currently at 63.10, while its signal line is at 64.27. If the RSI continues to rise and breaks above 72.62, it could push the gold-silver ratio towards the 74.20 resistance level, suggesting gold will likely continue to perform better than silver.
If the gold-to-silver ratio drops close to 72.62, it might find support around the $69-$68 range and potentially move towards its 200-day moving average of $65.21. If the ratio decreases and silver stays above $54.20, that would support a positive outlook. However, if the ratio rises above 72.62, it could signal another drop in silver prices.
2026-07-21 17:32