Silver Price Analysis: Plunges after hitting the top of a four-year range

• The price of Silver is declining after hitting the top of a four-year consolidation range around $30.00.
• XAG/USD has fallen to $27.00 and could continue lower as support will not materialize until $26.00.

The price of Silver (XAG/USD) has continued to sell off after being rejected by the top of a long-term range just below $30.00 (green line) on April 12.

The precious metal is now in the midst of a sharp decline and will likely continue lower until support materializes at the top of a smaller one-year range at $26.00.

Silver Daily Chart

The Moving Average Convergence/Divergence Momentum Indicator (MACD) has crossed below its signal line, indicating that Silver has likely reversed its medium-term trend and is poised to decline further. The signal is enhanced by the fact that the MACD is a more reliable indicator in markets that do not show a strong trend like Silver.

The price of Silver is likely to fall to the support of the previous range highs at $26.00. At that level he could make ground and recover. A decisive break below $26.00 would return Silver within its one-year range and possibly the lower trendline around $23.00.

However, only a decisive break above the 2021 high of $30.07 would reverse the bearish outlook and suggest silver is rising. Such a move would also signal a breakout of the four-year consolidation with an initial target at $32.40, where former resistance lies.