silver prices continue to face downward pressure, trading near a three-week low as market dynamics shift. The recent break below significant technical levels raises doubts about any potential recovery, which is likely perceived as a chance for further selling rather than a signal for renewed buying interest.
Currently, silver (XAG/USD) is experiencing a bearish sentiment for the second consecutive day, hovering around the $31.00 level, slightly above the lowest price recorded in mid-October. The latest decline has confirmed a breakdown from a previously established short-term ascending trend channel. This movement, compounded by the fall beneath the 50-day Simple Moving Average (SMA), has provided a fresh impetus for bearish investors. Negative traction in the daily oscillators adds to the momentum pointing toward further declines for silver .
A continuation of this downward trend could see prices targeting the 100-day SMA support, which is currently situated in the $30.40 – $30.35 range. A significant drop below the psychological level of $30.00 could lead to further declines toward the $29.70 support area, paving the way for potential testing of the $29.00 mark and the crucial 200-day SMA near $28.55.
Conversely, the 50-day SMA formed near $31.40 now stands as the immediate upside barrier. Should prices breach this level, short-covering could propel silver back toward the $32.00 region. Nevertheless, any upward movement may be met with resistance and could quickly lose momentum near the ascending channel support level, which is around $32.65.
If silver can break decisively above this pivotal point, it may indicate the end of the recent corrective phase following the peak of $35.00 noted in October. Such a shift could foster a more bullish outlook, bringing prices above the $33.00 level and into the resistance zone between $33.60 and $33.70.
