Silver With a Bearish Pin Bar

Today, the formation was activated, leading to a 1% sell-off. At the time of writing, silver was down to 23 USD.

It is now testing the previous uptrend line and the 50-day moving average; both converged near 22.85 USD. If the metal drops below that level, we could see further selling toward 22.50 USD.

However, sentiment in the markets seems to be improving as stocks erased their daily losses, and US yields ticked lower, likely supporting both gold and silver during the US session.

"With seven Fed hikes (one per meeting) virtually priced in now, interest rate expectations cannot get much more hawkish before the March meeting. This should allow markets to stabilize in coming weeks," said Andrea Cicione, head of research at TS Lombard in London.

Therefore, the intraday resistance is expected near 23.20 USD, and if the metal jumps above it, the immediate selling pressure could be over. In that scenario, bulls' next target could be in the 23.50 USD region, or possibly yesterday's highs near 23.70 USD.