Crypto News

Silver Prices Plunge: Bearish Traders Await Decisive Break Below Key Support Level

Published by
Nonhlanhla P Dube
  • Silver prices have been on a downward trend for the past two days, extending the sharp retracement slide from the $26.00 mark.
  • The $25.50-$25.40 horizontal resistance breakpoint has turned into support, and if decisively broken, could trigger bearish sentiment and lead to deeper losses.
  • Oscillators on the daily chart are still in positive territory, suggesting potential for dip-buying at lower levels, but any upward move may face resistance near the psychological mark of $25.00.

Silver prices continued their downward trend for the second day in a row on Tuesday, extending the sharp retracement slide from the $26.00 mark, as heavy selling pressure persisted. During the first half of the European session, the price of silver steadily declined, bringing the white metal closer to the strong horizontal resistance breakpoint of $25.50-$25.40, which has now turned into support.

This area coincides with the 23.6% Fibonacci retracement level of the March-April rally, and a decisive break below it could trigger bearish sentiment, leading to further losses. In this scenario, the XAG/USD might weaken further below the $24.00 mark and test the 38.2% Fibo. level, around the $23.70 area. If the corrective decline continues, the price could reach the horizontal support at $23.35-$23.30, en route to the confluence of the 50% Fibo. level and the 50-day Simple Moving Average (SMA) at $23.00.

Despite the current downward pressure, oscillators on the daily chart are still in positive territory, suggesting that there may be potential for dip-buying at lower levels. However, any intraday upward move may face resistance near the psychological mark of $25.00. If there is follow-through buying, the XAG/USD could move towards the supply zone at $25.50, above which bulls could attempt to push the price above the $26.00 mark.

The next relevant hurdle is pegged near the $26.25-$26.30 area, and if it is cleared, the 2022 high could be exposed, just ahead of the $27.00 mark. South African investors in the precious metals market should pay close attention to the silver price movement as it has a significant impact on the local mining industry. The price of silver is particularly important to South Africa, which is one of the world’s leading producers of the metal. The country’s economy depends heavily on mining, and fluctuations in silver prices can affect the profitability of mining companies and the country’s overall economic growth.

Nonhlanhla P Dube

Nonhlanhla P Dube is a senior news reporter at Rateweb. Nonhlanhla is a student of International Relations at the University of South Africa. She reports primarily on personal finance and economics. You can contact her directly by email at nonhlanhla@rateweb.co.za

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Published by
Nonhlanhla P Dube

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