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Silver dropped by more than 20% in just two days amid massive profit-taking. What's next?
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FUNDAMENTAL OVERVIEWThe strong bullish momentum seems to have waned for precious metals and silver is getting hit the most given its smaller market compared to gold.
A strong report would trigger a hawkish repricing in interest rate expectations and put pressure on silver.
SILVER TECHNICAL ANALYSIS – DAILY TIMEFRAMESilver - dailyOn the daily chart, we can see silver dropped by more than 20% since yesterday as profit-taking hit the market.
SILVER TECHNICAL ANALYSIS – 4 HOUR TIMEFRAMESilver - 4 hourOn the 4 hour chart, we can see that the price broke below the trendline that was defining the bullish momentum on this timeframe.
SILVER TECHNICAL ANALYSIS – 1 HOUR TIMEFRAMESilver - 1 hourOn the 1 hour chart, we can see that we have a minor downward trendline defining the current bearish momentum.