SILVER Prices Slide to One-Week Low with Bearish Momentum Intact

Silver Prices Slide to One-Week Low with Bearish Momentum Intact

Silver prices have dipped to a one-and-a-half-week low, trading around the $22.65 level during early European trading on Wednesday. Although the white metal has managed a slight recovery to the $22.80-$22.75 area, it remains down by approximately 0.30% for the day. The technical setup favors bearish traders, hinting at the potential for further declines in the near term.

Bearish Technical Setup

From a technical perspective, the recent break and close below the key psychological level of $23.00 are seen as significant triggers for bearish sentiment. Additionally, oscillators on the daily chart have begun to show negative momentum, supporting the possibility of further downward movement for XAG/USD (silver prices in US dollars).

The current technical setup suggests a potential retest of the ascending trendline support, which originated from the June monthly low and is currently situated around the $22.35 region. Should this trendline support fail to hold, it would confirm a fresh breakdown, possibly exposing the next relevant support level around the $22.00 mark. Additionally, the price experienced a rebound at the 50% Fibonacci level, which is another detail to consider for a possible downturn.
Further Downside Targets

If selling pressure persists, silver prices may experience a more pronounced downward trajectory, potentially targeting the $21.25 intermediate support level before potentially dropping to the key psychological level of $21.00. This suggests that the white metal faces the risk of further losses in the coming sessions.

Conclusion

Silver prices have slid to a one-and-a-half-week low, and the technical setup appears to favor bearish traders. A retest of the ascending trendline support near $22.35 seems increasingly likely, and a convincing break below it could open the door to further declines. Traders will closely monitor silver's price movements and key support levels as they seek potential trading opportunities in the coming days.

Our preference

Short positions below 23.10 with targets at 22.65 & 22.50 in extension.

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