Silver (XAG/USD) has faced persistent selling pressure, marking its second consecutive day of decline on Thursday as it fell to its lowest point since May 9, reaching approximately $27.80 during the Asian trading session.
Technical analysis indicates a significant breach below the $28.65-$28.55 horizontal support level, aligning closely with the 100-day Simple Moving Average (SMA). This breakdown is likely to signal further bearish sentiment among traders. The daily chart’s oscillators show increasing negative momentum, reinforcing expectations for continued downward movement in XAG/USD.
The next critical support level to watch is situated around $27.40-$27.30, with a potential descent towards the $27.00 mark appearing increasingly probable. If the downtrend persists, further downside targets could extend towards the $26.60-$26.55 range before potentially testing the 200-day SMA near $26.00.
Conversely, any recovery attempts are likely to encounter strong resistance in the $28.55-$28.65 range. A decisive breakthrough above this barrier could trigger a short-covering rally, potentially pushing XAG/USD past the psychological $29.00 mark towards resistance zones near $29.40-$29.45, or even the weekly high approaching $29.80.
Continued bullish momentum above $30.00 could propel silver prices towards the $30.35-$30.40 range, setting the stage for a potential reclaiming of the $31.00 round-figure threshold.
Investors and traders are advised to monitor these technical levels closely as they navigate the current market conditions in silver trading.
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