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08/10/24
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Silver Prices Sink: Indicators Point to Potential Further Decline
Silver prices have continued to decline for the second consecutive day, showing signs of vulnerability for further drops. After reaching around $33.00 last week, a peak not seen since December 2012, the metal has been under increasing selling pressure, currently dragging it down to approximately $31.00, marking a one-week low.
Technical analysis reveals a bearish multiple-tops pattern developing on the daily chart due to repeated failures to sustain trading above the $32.00 level. Although the oscillators suggest potential downward momentum, they have not yet confirmed a strong negative trend. Traders are advised to monitor closely for a decisive move below the $31.00 threshold, which could signal a further decline.
Should this break occur, silver may fall toward the critical support range of $30.60 to $30.55, potentially leading to a test of the psychological $30.00 level. Beyond that, the next focus would be the confluence of support levels between $29.75 and $29.55, driven by both the 100-day and 50-day Simple Moving Averages. A break through these levels could open the path for a decline toward $29.00 and subsequently to the support range of $28.60 to $28.50.
Conversely, if silver manages to break above $31.55, it may experience an upward move towards intermediate resistance at $31.75 to $31.80, followed by the $32.00 level. A substantial push past the $32.25 supply zone could allow buyers a chance to target the $33.00 level again, potentially challenging the peak of approximately $33.85 reached in December 2012.
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