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01/05/25
21
Silver Prices Slide: A Bearish Trend Risks Further Declines
Silver prices continued to slide on Thursday, marking the third consecutive day of losses and reaching their lowest levels in over two weeks. The white metal has struggled to maintain momentum despite showing some resilience above the $32.00 level. Current technical indicators support the idea that the downtrend observed over the past week may extend further.
A critical point of concern for traders is the 100-hour Simple Moving Average (SMA). A decline below this level may signal increasing bearish sentiment in the market. Alongside this, momentum indicators on both the daily and four-hour charts have shown signs of weakness, reinforcing an outlook that favors further declines for silver prices. Caution is advised; market participants are likely to wait for a confirmed breach below $32.00 before taking aggressive positions for additional losses.
Should the selling pressure continue, silver could potentially fall to the $31.70 support level, with further targets in the range between $31.55 and $31.50, eventually leading to the psychological barrier of $31.00, which corresponds with the 200-day SMA. This moving average is expected to provide robust support; however, if it fails, a further decline towards $30.00 could become a reality, with some interim support anticipated around $30.55-$30.50.
On a more positive note, the immediate resistance level is found near the $32.35 area, representing the 100-hour SMA. A rally past this point could lead to testing higher resistance at $32.55, with additional resistance located in the $32.75-$32.80 range. Should prices break above $33.00, it could trigger a significant recovery, potentially pushing the market towards the strong resistance barrier at $33.70, which could shift the prevailing bearish sentiment to a more optimistic outlook for silver.
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