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(Kitco News) – Comex Silver Futures Prices were affected by a more than 10% drop on Friday, resulting in near-term technical damage, including the sound cancellation of a bullish price trend on the March’s daily bar chart. Prices also closed at a technically bearish weekly low at the close on Friday.
Huge daily losses in silver on Friday are not rare for the metal. Examination of the daily chart of March futures shows the huge daily declines that occurred in August, September and November. These previous big losses definitely dampened the bullish enthusiasm in the near term, but prices quickly recovered and recently started a near-term uptrend on the daily chart.
Looking at the monthly continuous chart of nearby Comex silver futures, shown here, shows that no long-term damage has occurred on the chart. In fact, prices in 2020 saw an upward “breakout” from a choppy and sideways trading range going back to 2015 on the monthly chart. The recent stoppage in the upward breach on the monthly chart is not bearish at all and the bulls continue to hold the long term technical advantage.
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