silver prices continued to decline, marking the second consecutive session of losses. The current trading value sits around $30.90 per troy ounce, reflecting a clear shift in market momentum from bullish to bearish. Daily chart assessments reveal that the silver market has broken below its ascending channel pattern, indicating a weakening of short-term price trends and increased selling pressure.
The movement of the XAG/USD pair beneath both the nine-day and 14-day Exponential Moving Averages (EMAs) signals a persistent bearish outlook, underscoring growing investor apprehensions. Compounding the bearish sentiment is the 14-day Relative Strength Index (RSI), which has dropped below the key 50 threshold, further validating the aggregate shift in market attitude.
On the downside, notable support levels exist around the psychological threshold of $30.00, with additional support anticipated near the three-month low of $29.65, reached on November 28. If selling continues, this level may serve as a critical testing point for traders aiming to gauge the strength of the bearish trend.
Conversely, immediate resistance levels are identified at the 14-day EMA around $31.17, with the nine-day EMA slightly higher at approximately $31.22. Should prices manage to surpass these resistance levels, there is potential for a resurgence of bullish sentiment, potentially allowing silver to reclaim its position within the ascending channel pattern. Such a recovery could set the stage for the XAG/USD pair to target a five-week high of $32.28, with aspirations to reach the upper boundary of the channel at $33.00.
