The price of silver is under intense pressure today, tumbling $6.55 or -7.84% to $76.90.
The sharp decline marks the largest one-day percentage drop since March 3, when the metal fell -8.15%, and reflects a dramatic shift in momentum after silver once again failed near a major resistance target around the $90 level
That $90 area has been an important technical ceiling for the market. It represents a swing high going back to March 10, and traders were watching closely this week to see if buyers could finally force a sustained breakout. On Wednesday, the rally extended to $89.37 — just shy of that key target — before momentum stalled.
The inability to get to and through the $90 level opened the door for profit-taking and aggressive selling pressure, and sellers have taken full advantage in today’s trade. The downside momentum accelerated after the price broke below its 100-day moving average, which currently comes in at $80.94. That moving average had acted as a key support level during prior pullbacks, and the break below it shifts the technical bias more firmly in favor of the sellers.