silver prices have started the week with a slight upward movement, but the future upside appears constrained. Market analysts suggest that renewed selling could emerge at elevated levels unless the price moves decisively past the $31.00 level, which would alter the current bearish outlook.
During the Asian trading session, silver (XAG/USD) showed positive momentum, trading in the range of $30.70 to $30.75. The precious metal has been oscillating within a multi-day trading range around the 100-day Simple Moving Average. A notable bounce was observed last week when the silver price rebounded from a critical support zone at $29.70 – $29.65, which aligns with the 61.8% Fibonacci retracement level from an earlier August to October rally. Although the market showed signs of renewed buying on Monday, key technical indicators remain in negative territory, indicating that upward movements might face significant resistance close to the $31.00 level.
Continued buying activity would suggest that the recent decline from the psychological $35.00 peak has concluded, potentially paving the way for further price increases. Should this occur, silver may target the next significant resistance around $31.70, corresponding to the 38.2% Fibonacci retracement level, before trying to reclaim the $32.00 level.
On the downside, the immediate support is likely to be found in the $30.20 range, with the critical psychological level of $30.00 acting next. If the price were to breach the $29.70 – $29.65 area, where a two-month low was established, it could trigger bearish sentiment. A decisive move below this level may push prices below the $29.00 level, heading towards vital support from the 200-day SMA around $28.80 – $28.75, with further potential decline towards the $28.40 – $28.35 region, which coincides with the 78.6% Fibonacci retracement level.
