silver prices have made a modest recovery, currently hovering around $29.60 during the Asian trading session on Monday. However, the overall outlook remains bearish as the price continues to operate below the crucial 100-day Exponential Moving Average (EMA). This trend is further indicated by a bearish Relative Strength Index (RSI), which is currently positioned below the midpoint, pointing toward the potential for further declines.
The recent uptick in silver prices can be attributed in part to the weaker-than-expected inflation data from the US for November. Despite this short-term recovery, forecasts suggest that upside potential may be constrained due to the Federal Reserve’s cautious monetary easing stance anticipated for the upcoming year. As market participants evaluate the state of inflation and economic growth, silver prices may need to contend with a challenging environment.
Key support for silver is found within the $29.10 to $29.00 range, which aligns with both the lower threshold of the Bollinger Band and a notable psychological level. If silver ’s price falls below these points, the next target may be the September 9 low of $27.70. Further declines could see prices testing $26.45, which was the low recorded on August 8.
On the other side, the $30.00 level is a significant resistance level that silver needs to break to indicate a stronger bullish trend. If prices can sustain above this level, the market may then aim for $30.60, coinciding with the 100-day EMA. Beyond that, the $32.17 level represents another key barrier, signaling potential for a more substantial upward movement in silver prices.
