Silver: Technically Still Not Convincing Enough

From a technical point of view, spot silver remains on the downside despite the recent rebound.

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On Wednesday, spot silver retreated 2.5% to $23.95, after bouncing nearly 10% from its low in late November. U.S. stimulus hopes eased as investors expect lengthy debate in the Congress.

Meanwhile, Bloomberg data showed that total known ETF holdings of silver rose 1.0% so far in December, but still a very modest growth compared with the surge in demand during March to July.

Source: GAIN Capital, TradingView

On a daily chart, spot silver remains on the downside despite the recent rebound. In fact, it has retreated after reaching a bearish trend line drawn from August, and has potentially formed a bearish evening star pattern. The level at $24.90 might be considered as the nearest resistance, while the 1st and 2nd support are expected to be located at $21.60 and $20.50 respectively.

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