silver prices saw a slight uptick, trading around $30.15 during the early Tuesday session in Asia. However, this upward movement could be constrained as investors engage in profit-taking strategies. The ongoing uncertainty in the market, driven by fears of a potential global trade war, may lead to liquidation of positions. Additionally, some investors may be responding to falling asset values, prompting margin calls and covering losses. Despite these challenges, the depreciation of the U.S. dollar may offer some support, limiting potential declines in the price of this precious metal.
Analyzing daily market trends, the overall negative sentiment surrounding silver persists, as demonstrated by its struggle to rise above the critical 100-day Exponential Moving Average (EMA). The bearish outlook is further corroborated by the 14-day Relative Strength Index (RSI), resting below the neutral mark at approximately 32.70. This trend favors selling pressure in the short term.
Looking ahead, the immediate downside target for silver appears to be the psychological level of $30.00. Should this level be breached, further support may be found at $28.80, which marks the low reached on December 20, 2024. A more significant downside filter is noted at $28.31, the low from April 7, indicating potential for further price drops.
On a more positive note, immediate resistance is situated at $30.85, corresponding to the peak noted on January 21. Should buyers push past this resistance, silver could aim for $31.77, aligning with the 100-day EMA. A substantial breakthrough above this level could signal a rise towards $33.20, the peak recorded on February 20, offering a potential rally for the metal in the coming trading sessions.
