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27/09/24
104
Silver Prices Slide: Bullish Sentiment Remains Despite Recent Pullback
Silver prices have taken a downward turn, moving further away from a 12-year high reached recently. While this shift may raise some concerns for traders, experts suggest the environment still favors bullish sentiment, indicating that any significant decline is likely to prompt buying as investors look for opportunities.
Currently, silver (XAG/USD) is retracing from the peak of $32.70 that it reached earlier in the week. During the Asian trading session, prices hovered just below $32.00, reflecting a minor decrease of 0.25% for the day. Despite this pullback, there appears to be interest from buyers at these lower price levels, providing some support against further declines.
Technical analysis reveals that key indicators remain in a favorable position. The market has not yet entered the overbought territory, and the recent breach of a short-term descending trend-line resistance bodes well for bullish traders. However, the inability to maintain momentum beyond the $32.45-$32.50 range on Thursday suggests greater caution is warranted for those seeking to capitalize on upward moves.
Resistance is likely to persist in the $32.45-$32.50 range, while the recent high near $32.70 may serve as a further barrier. A sustained buying effort could potentially lift prices towards the $33.00 mark and further challenge the $33.45 level, leading toward the significant swing high of $33.85 that was last seen in December 2012.
Conversely, immediate support appears to rest in the $31.60-$31.55 range. Should prices slip below this zone, the $31.25 level may act as a favorable re-entry point for buyers. However, a decisive break below $31.00 could expose silver to a drop towards the $30.60-$30.55 range, with the psychological level of $30.00 looming as a critical threshold, coinciding with supportive trend lines and moving averages. Failure to hold these support levels could indicate a possible downturn for silver prices in the coming periods.
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