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03/09/24
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Bearish Pressure on Silver: Technical Indicators Signal Potential Drop
Silver prices are currently encountering difficulties, exhibiting a bearish trend as indicated by recent technical analyses. The MACD indicator has signaled a shift in market momentum, crossing below the signal line. This development suggests that silver prices may experience downward pressure, with potential trading activity around the lower boundary of a descending channel at approximately $27.70.
As of Tuesday during Asian trading hours, silver prices (XAG/USD) extended losses for the third consecutive day, hovering near $28.50 per troy ounce. The daily chart reflects the positioning within a descending channel, reinforcing a bearish outlook. Furthermore, the 14-day Relative Strength Index (RSI) is trending below the neutral 50 level, further affirming the prevailing bearish sentiment.
The recent MACD crossover can be interpreted as a fundamental shift in momentum from bullish to bearish, raising concerns about the future trajectory of silver prices. Should the price dip below the key support level of $27.70, there is a risk that bearish trends could intensify, potentially leading silver to seek additional support around the $26.50 level.
Conversely, on the upside, silver prices are testing immediate resistance at the upper boundary of the descending channel, notably near the nine-day Exponential Moving Average (EMA) at around $28.97. If prices manage to break through this resistance level, there is potential for silver to reach higher grounds, possibly approaching the three-month high around $31.76. Traders will closely monitor these dynamics as the market continues to evolve.
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