Silver prices are struggling to maintain upward momentum, currently hovering near the 100-day Simple Moving Average (SMA) at $30.34 with a bearish tilt. The precious metal faces the risk of further declines, which could bring it down to test critical support levels at $30.00 and the 200-day SMA at $28.63. However, a potential rebound above $31.00 may signal renewed bullish strength, opening the door to test higher resistances, including the 50-day SMA at $31.51 and potentially beyond. This article delves into the technical indicators shaping silver’s price action and the potential scenarios ahead.
Silver’s price declined by more than 0.70%, dropping below the $30.30 mark following stronger-than-expected US Retail Sales data, which hinted at the possibility of a gradual policy easing by the Federal Reserve. Currently, XAG/USD is trading at $30.21, having earlier reached a daily high of $30.81.
Technical Outlook on the Silver Market (XAG/USD)
The Silver market reached a peak of $35 on October 23 before entering a consistent bearish trend. This downward trajectory has brought the price to a critical support level at $30. However, as bearish momentum persists, the support at $30 appears increasingly fragile, with price action dipping below this level.
While a bullish bias has emerged at the $30 mark, the market remains under considerable bearish pressure. Notably, the price action is significantly below the 20-day Simple Moving Average (SMA), currently positioned at $32, reinforcing the bearish outlook.
That said, with the market at a major support level, there is a possibility of short-term consolidation as price action stabilizes before determining its next direction.
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