silver prices continue to decline, stepping back from a peak of $33.00 reached on Friday, which marked its highest level since December 2012. The metal has entered the new week with a subdued performance, hovering around $32.00 during the early European session. This recent inability to maintain levels above $32.00 raises concerns for bullish investors, indicating potential caution ahead.
The development of a bearish multiple-tops pattern on the daily chart, due to these repeated failed attempts at sustaining above the $32.00 threshold, suggests a weakening momentum. However, underlying indicators remain in a positive territory, which supports the possibility of a rebound in buying interest near the $31.65 level. This could help to cushion silver ’s decline, as stronger support is seen around the $31.40-$31.35 range.
In the event of further downward movement, the commodity could test the $31.00 psychological level. A break below last week’s low, which sits around the $30.90-$30.85 range, may expose silver to additional selling pressure. Should this happen, the price could slide towards intermediate support levels at $30.40-$30.35, with the significant $30.00 level and the 50-day Simple Moving Average located around $29.55 also in focus.
For silver bulls, reclaiming stability above the $32.00 level is critical. A decisive movement beyond the $32.25 supply zone would confirm the resumption of the two-month uptrend. If this upward trend materializes, silver could make another push towards the $33.00 level and potentially reach the swing high from December 2012, estimated at approximately $33.85.
