silver prices are currently experiencing a downward trend, hovering just above a two-week low reached on Monday. The overall technical indicators suggest a bearish outlook, with indications pointing towards the potential for further declines. To shift this negative sentiment, silver will need to maintain a position above the 100-day Simple Moving Average (SMA).
As of Tuesday morning, silver (XAG/USD) is trading slightly lower, struggling to build on a recent bounce from the $29.70 level. Currently, prices are just above the psychological level of $30.00, reflecting a minor decline of 0.20% for the day. The inability to hold above the 100-day SMA from last week, coupled with a breakdown from a short-term upward trend, positions silver in a precarious situation.
Daily chart oscillators indicate a slight loss in momentum but have yet to confirm a fully bearish stance. In this context, it may be wise to wait for a definitive move below the recent low of approximately $29.70 before making any significant trading decisions. Should silver fall past the mid-$29.00 range, the next support levels to watch would be between $29.10 and $29.00. Continued weakness could lead prices toward a multi-month low, with a potential test of the $28.75 -$28.70 area and a further decline toward the $28.00 mark.
On the upside, resistance is likely to materialize around the $30.30 level, creating an immediate challenge for bullish attempts. Should silver manage to break above the $30.50-$30.60 range, any upward momentum may encounter significant resistance near the $31.00 mark, equating to the 100-day SMA. A strong move past this pivotal point could alter the current market dynamics, favoring a bullish trend and opening the door for additional gains.
