silver continues to demonstrate weakness at the start of the week, settling at approximately $30.55, just above its 100-day Simple Moving Average (SMA). The metal is struggling to recover from last week’s decline, which saw it retreat from a one-month high, and is hovering close to a two-week low reached on Friday. This price point is critical as traders monitor potential bearish signals.
Technical analysis indicates that if silver slips below the 100-day SMA, it could ignite new downward momentum for sellers who are observing the previous failed attempt to breach the $32.35 resistance level. Current oscillators suggest increasing bearish momentum, potentially allowing silver to decline beneath the psychological support level of $30.00, with targets set around the November lows of $29.70 to $29.65.
If the market experiences further selling pressure, it could lead to a downward movement towards the support zone between $29.10 and $29.00. A prolonged bearish sentiment could push prices towards $28.40 to $28.35, eventually testing the significant round number of $28.00.
Conversely, any attempts at recovery are likely to face considerable resistance near the $31.00 level. For a more optimistic outlook, silver would need to maintain strength beyond this threshold, which could stimulate a short-covering rally, potentially driving the price up towards $31.75. Extending this positive momentum further could see silver approach the round figure of $32.00, with aspirations of revisiting recent highs around the $32.35 resistance encountered last week.
Overall, the outlook for silver remains cautious, with the potential for both downward and upward movements, contingent on breaking critical price levels in either direction.
