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28/10/24
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Silver Prices Under Pressure: Key Levels to Watch Amid Cautious Trading
Silver prices opened the week on a slight downturn, hovering just above the crucial $33.00 level. This technical positioning suggests that bearish traders should proceed with caution, as a decisive movement below $33.00 could trigger a significant correction in prices.
During the Asian trading session on Monday, the price of silver (XAG/USD) experienced fresh selling pressure, currently trading around $33.30, marking a decrease of approximately 1.25% for the day. Despite this decline, silver has remained above the one-week low reached on Friday, around the $33.10 – $33.00 range, signaling some resistance to further losses.
Technical indicators on the daily chart indicate a gradual loss of positive momentum, yet they have not yet fallen into negative territory. This situation suggests that traders should wait for a confirmed breach below the $33.00 level before considering further positions that would capitalize on last week’s pullback from the highs not seen since October 2012. Should prices fall convincingly below the $32.75 – $32.65 level, which has shifted from resistance to support, this would reinforce a negative outlook, putting XAG/USD at risk of further declines.
A decline from this point could reveal the $32.20 – $32.15 range as an intermediate support level, followed by the psychological $32.00 level and the lower $31.70 – $31.65 zone. The bearish trend could extend further to target the $31.00 level and possibly reach the monthly swing low near $30.00, which was tested on October 8.
Conversely, the immediate resistance appears to be at the $33.65 level. Should prices reclaim this zone, there is potential for XAG/USD to reach the $34.00 level, with further gains aiming towards the $34.30 – $34.35 supply zone. Successful bullish momentum may enable traders to push towards the $35.00 psychological level, with aspirations to revisit the October 2012 swing high, situated around $35.35 – $35.40.
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