silver continues to face selling pressure for the third consecutive day, indicating a potential for further declines. Following a slight rebound from the key psychological level around $30.00, the metal appears to be struggling as it trades with a downward bias. Currently, silver is hovering just above the mid-$30.00 range, showing signs of vulnerability after reaching its peak since December 2012 last week.
From a technical standpoint, silver ’s repeated inability to maintain levels above $32.00 has led to the formation of a bearish multiple-tops pattern on the daily chart. This pattern, combined with the negative momentum indicated by the oscillators, reinforces a bearish outlook in the near term. There is a significant possibility that prices could dip below the $30.00 threshold, with the next key support target expected to lie between $29.75 and $29.60. This range is characterized by the convergence of the 100-day and 50-day Simple Moving Averages (SMAs), and a decisive breach below this level could trigger further declines.
Should silver break past the critical support levels, it could accelerate its descent towards the $29.00 level and potentially approach the $28.60 to $28.50 support zone. Conversely, any attempts to recover are likely to encounter immediate resistance near $31.00. If the price breaks above this threshold, it may initiate a short-covering rally, propelling silver towards the $31.55 resistance and possibly testing the $31.75-$31.80 range, followed by the significant $32.00 level. A break above $32.00 could signal a renewed attempt to reach for the multi-year peak and challenge the $33.00 round figure.
