17 Dec 2024

Silver prices continue to decline, reflecting a deterioration in short-term price momentum. The configuration of the nine- and 14-day exponential moving averages indicates a deficiency in robust directional momentum. Initial support is identified at the psychological level of $30.00, with additional "throwback support" located at the three-month low of $29.65.

Silver prices (XAG/USD) are experiencing a decline for the fourth consecutive day, currently trading at approximately $30.50 per troy ounce during the Asian trading session on Tuesday. An examination of the daily chart reveals a shift in momentum from a bullish to a bearish stance, as the pair has fallen below the ascending channel pattern.

The XAG/USD pair is trading beneath both of the exponential moving averages (EMAs), which suggests a bearish outlook and indicates a weakening of short-term price momentum. This trend points to a growing interest in selling, thereby increasing the probability of further price declines. Moreover, the 14-day Relative Strength Index (RSI) is situated below the 50 threshold, which further substantiates the development of the bearish sentiment.

The current alignment of the nine- and 14-day Exponential Moving Averages (EMAs) indicates that the market is undergoing a phase of consolidation, characterized by a lack of significant directional momentum. This situation may lead traders to conclude that the market is awaiting a catalyst to guide its subsequent movement, whether it be upward or downward.

The XAG/USD pair is likely to approach its primary support at the psychological threshold of $30.00, followed by a "throwback support" level at the three-month low of $29.65, which was established on November 28.

On the upside, immediate resistance levels are identified at the nine- and 14-day EMAs, positioned at $30.91 and $30.96, respectively. A breakthrough above these points could reinstate a bullish sentiment, potentially allowing the Silver price to revisit its six-week high of $32.28, achieved on December 9.