silver prices experienced a decline on Wednesday, falling to a new weekly low as selling pressure increased. The price of silver , which is currently trading in the mid-$30.00 range, reflects a nearly 0.70% decrease for the day. This retreat follows a recent peak of approximately $31.10, which was achieved earlier in the week. Despite this drop, there are indications that buyers may be positioned to enter the market at lower levels.
The recent upward movement in silver was supported by a breakout above a short-term descending trendline resistance near the $29.40 level. This area is significant as it aligns with the 100-day Simple Moving Average, affirming the potential for a positive trend in the near term. Technical indicators on the daily chart remain in favorable territory, signifying that the market is not yet overextended, thereby suggesting that there is still room for upward movement.
Should prices decline further, strong buying interest is anticipated around the psychological level of $30.00. This demand may provide a cushion against downward pressure, especially given the prior resistance at $29.40, which has now transformed into a support level. If prices were to break below this threshold, silver could see further weakness, potentially testing lower support levels around $28.45 to $28.40.
Conversely, initial resistance is identified in the $30.80 region, with a subsequent hurdle at the $31.00 mark. Should silver reclaim this point, it may target higher levels, possibly reaching $31.45 and challenging previous highs near $31.75. The ultimate aim for bullish trends would be to reclaim the psychologically significant $32.00 level, elevating silver closer to highs not observed in nearly a decade.
