Silver Stuck, Risks Sharp Drop to $35
Silver (XAG/USD) prices moved flat around the $37.00 level at the start of this week after experiencing a small increase last Friday. However, downside potential remains strong as silver has been unable to maintain its upward momentum and is near the four-week low reached last week.
Technically, silver's price movement, which broke through the support line of its two-month ascending channel and surpassed the 200-period simple moving average (SMA) on the 4-hour chart, indicates that selling pressure remains dominant. Other technical indicators on the daily and 4-hour charts also show negative signals, reinforcing the downtrend prediction.
If the price attempts to recover, the upward movement will likely face strong resistance around the $37.35 and $37.60 levels, which are important resistance levels. A successful breakout of these levels could allow silver to continue its rise towards $38.00 and even into the $38.30-$38.35 range.
However, if selling pressure persists and the price falls past the multi-week low around $36.20, the downside could extend to the psychological level of $35.00. Further declines would confirm the negative bias and push the price towards the next support level around $35.50. (ayu)
Source: Newsmaker.id
