silver prices continue to exhibit a negative trend as they remain below the 50-day Simple Moving Average (SMA) for the second consecutive day. The technical indicators suggest a challenging outlook for silver , with the potential for further declines if the market sustains weakness beneath the $31.00 threshold. Such a drop could lead prices to the 100-day SMA, currently positioned around $30.35.
Despite this bearish sentiment, silver has managed to stay above the $31.00 level during the Asian trading session. However, the metal is still near a three-week low, heightening concerns of a continued downward correction following a previous peak not seen in 12 years. The lack of significant selling pressure below this critical level underlines the need for further movement to confirm a bearish trend.
Analyzing the technical setup, a consistent position beneath the 50-day SMA supports a pessimistic view on silver ’s future movement. Furthermore, daily oscillators indicate increasing negativity, suggesting the most likely path ahead is downward. Observers are encouraged to await clear selling signals below the $31.00 level to consider positioning for a deeper slide towards the psychological support at $30.00. Should the price plunge past this point, the outlook would shift towards the next notable support levels near $29.50-$29.45 and potentially the $29.00 area, before approaching the critical 200-day SMA around $28.70 to $28.65.
Conversely, if silver prices manage to break through the immediate resistance at $32.00, it could pave the way for an upward movement towards the $32.35 – $32.40 supply range. Sustained momentum above this barrier might trigger a short-covering rally, with targets potentially reaching $33.00 and extending further into the mid-$33.00s.
