silver prices are facing continued downward pressure as they approach October’s swing low, reflecting a bearish sentiment prevailing in the market. Following a significant decline, the price hovered around levels not seen since mid-September, with traders closely watching for a decisive breach below the psychological $30.00 level, which could signal further losses.
In the previous trading session, silver closed beneath the 50% Fibonacci retracement level from its rally spanning August to October, marking a notable shift in market dynamics. This, combined with a drop below the 100-day Simple Moving Average for the first time in over a month, could potentially serve as a catalyst for increased selling activity. Technical indicators suggest that bearish momentum is gaining traction, and with oscillators indicating negative movement without entering an oversold condition, the outlook for silver remains predominantly negative.
As the price continues to decline, it could find support near the 61.8% Fibonacci retracement level, estimated in the vicinity of $29.65 to $29.60. Should the downward trend persist, further declines could push prices towards $29.20 and below, potentially testing the significant 200-day Simple Moving Average around $28.65.
On the other hand, if the market sees any substantial recovery, resistance is likely to be encountered near the $30.60 level, coinciding with the 50% Fibonacci retracement level. While a short-term rally could materialize and bring prices back to the $31.00 range, the overall momentum may struggle to break through the $31.20 level. A decisive move above this point could indicate a near-term market bottom and open the door for potential gains in silver prices.
