silver prices have continued their downward trajectory for four consecutive days, currently trading around $30.50 per troy ounce during Tuesday’s Asian trading session. This price movement marks a notable shift in momentum, as the daily chart analysis reveals a transition from a bullish to a bearish trend, particularly after the price breached an ascending channel pattern.
The XAG/USD pair’s movement below the nine- and 14-day Exponential Moving Averages (EMAs) reflects a weakening of short-term price momentum, indicating rising selling pressure. Additionally, with the 14-day Relative Strength Index (RSI) falling below the neutral 50 mark, the technical indicators further support the emergence of a bearish outlook in the silver market.
Despite this downward trend, the alignment of the nine- and 14-day EMAs hints at a potential period of consolidation, where the market lacks a strong directional movement. This scenario suggests that traders may be awaiting some external catalyst to drive prices either higher or lower in the near future.
Looking at potential support levels, the immediate focus is on the psychological level at $30.00. If this level is breached, the silver price could revisit its recent three-month low of $29.65, which was established on November 28. Conversely, on the upside, traders are watching the immediate resistance levels at the nine- and 14-day EMAs, situated at $30.91 and $30.96, respectively. A successful break above these thresholds could reinstate bullish momentum, potentially allowing silver prices to re-test the six-week high of $32.28 recorded on December 9.
