Silver (XAG/USD) is currently under pressure, with bears maintaining control as the price trades below critical support levels. For the second consecutive day, silver is moving in a negative direction, struggling to sustain any significant recovery. As of Thursday morning, silver holds just above the $31.00 mark, but technical indicators suggest a bearish outlook in the near term.
A Breakdown in the Ascending Channel
Silver’s recent downfall has triggered a breakdown of the ascending channel pattern on the daily chart. This move below the 50-day Simple Moving Average (SMA) has opened the door for further downside momentum. The technical picture points to a weakening bullish trend, with oscillators showing negative traction, supporting the bearish narrative.
Support Levels to Watch
The immediate support for XAG/USD lies near the 100-day SMA, which is currently positioned around the $30.35-$30.40 region. If the price fails to hold this level, silver could be vulnerable to a more significant drop, potentially testing the $30.00 psychological mark. A move below this key level could set the stage for further losses, with the next major support zone found near $29.70.
The path could extend even further down to the $29.00 round figure and, in the worst-case scenario, toward the critical 200-day SMA near $28.50-$28.40. These levels will be crucial in determining whether silver’s bearish trend continues or if a reversal attempt is on the horizon.
Also read : Silver Price Outlook- XAG/USD Nears $32.20 As Bearish Indicators Suggest Further Decline
Resistance Levels and Potential Recovery
On the upside, any potential recovery would face significant resistance near the 50-day SMA, now acting as a hurdle at around $31.35. A sustained break above this level could signal a short-term rally, possibly pushing silver towards the $31.75 and $32.00 resistance zones. However, further gains are likely to face selling pressure, especially as the price nears the ascending channel support breakpoint around $32.75.
