Silver is off to a poor start to the week and appears susceptible to further declines.
The negative outlook for the XAG/USD is confirmed by the recent failures close to the 200-day SMA.
For the short-term bearish bias to be eliminated, there must be a persistent increase above $30.00.
At the beginning of a new week, silver (XAG/USD) continues its slight decline from the area around the psychological $30.00 mark from Friday. The white metal appears to have halted its recovery from a multi-month low that was reached in December after plunging below the mid-$29.00s during the Asian session.
Technically speaking, bearish traders benefit from the recent breakdown and recurrent failures close to the 200-day Simple Moving Average (SMA). This indicates that the XAG/USD has a downward path of least resistance, as does the fact that oscillators on the daily chart are holding in negative territory. The outlook will be reaffirmed and the commodity will be susceptible to a decline towards the $29.00 mark if there is some follow-through selling below the $29.40 region.
The multi-month low, which should serve as a crucial turning point, or the $28.75–$28.70 region, could be the next stop on the downward trajectory. An extension of a well-established downward trend from the $35.00 neighborhood, or a multi-year peak reached in October, will be made possible by a sustained break below.
Conversely, the 200-day SMA at $30.00 may still serve as a strong barrier right away; a short-covering attempt above this level could push the XAG/USD to the next significant barrier, which is located around $30.50. The white metal may eventually be able to recover the $31.00 mark and test the $31.15–31.20 supply zone thanks to the momentum.
The negative outlook for the XAG/USD is confirmed by the recent failures close to the 200-day SMA.
For the short-term bearish bias to be eliminated, there must be a persistent increase above $30.00.
At the beginning of a new week, silver (XAG/USD) continues its slight decline from the area around the psychological $30.00 mark from Friday. The white metal appears to have halted its recovery from a multi-month low that was reached in December after plunging below the mid-$29.00s during the Asian session.
Technically speaking, bearish traders benefit from the recent breakdown and recurrent failures close to the 200-day Simple Moving Average (SMA). This indicates that the XAG/USD has a downward path of least resistance, as does the fact that oscillators on the daily chart are holding in negative territory. The outlook will be reaffirmed and the commodity will be susceptible to a decline towards the $29.00 mark if there is some follow-through selling below the $29.40 region.
The multi-month low, which should serve as a crucial turning point, or the $28.75–$28.70 region, could be the next stop on the downward trajectory. An extension of a well-established downward trend from the $35.00 neighborhood, or a multi-year peak reached in October, will be made possible by a sustained break below.
Conversely, the 200-day SMA at $30.00 may still serve as a strong barrier right away; a short-covering attempt above this level could push the XAG/USD to the next significant barrier, which is located around $30.50. The white metal may eventually be able to recover the $31.00 mark and test the $31.15–31.20 supply zone thanks to the momentum.
