Saad Ullah
⬤ Silver took a sudden dive, losing about 2% within minutes before finding its footing. These quick sell-offs have been hitting harder lately, even with silver trading at elevated prices. The intraday chart shows a sharp drop followed by stabilization, with the price staying above $100 and holding within the broader uptrend.
⬤ Technical indicators tell an interesting story here. Silver's still trading above important support levels, including a rising trend line and the Ichimoku cloud. The sell-off was brutal but didn't break anything structurally. As one trader noted, "at current price levels, similar percentage declines remove less relative value than in past cycles." What this means: a 2% drop at $100 hurts less than it would've at $20, and the chart backs this up—price bounced back fast instead of cascading lower.
⬤ Volume spiked during the decline, showing real traders were involved, not just thin liquidity causing erratic moves. But here's the key: the selling didn't continue. Silver held firm above the psychological $100 mark. The chart also reveals some resistance overhead that might slow any rally attempts, but the support underneath has been absorbing the downside pressure so far. No clean break below support has materialized.
⬤ This matters because silver's acting differently at these higher price levels. You'll still see wild intraday swings, but they're not flipping the overall trend as long as support holds. With silver maintaining ground above $100, expect more volatility without necessarily breaking the structure. The real question now: will support keep catching these aggressive selling waves, or will we see something give in the coming sessions?
Saad Ullah
