Silver has seen strong selling pressure for three days in a row, bringing prices down to around $35.65, a level not seen in over a week during the Asian trading session. This decline follows a drop from a high not reached since February 2012. From a technical standpoint, silver’s drop below $37.00 and the 23.6% Fibonacci retracement level suggests a bearish trend. The oscillators on the 4-hour chart show negative momentum, indicating the possibility of further declines. If the price breaks decisively below the mid-$35.00 range or the 100-period simple moving average (SMA) on the 4-hour chart, we could see deeper losses. If the downward trend continues, silver might reach the 38.2% Fibonacci level around $35.15, potentially moving down to the psychological level of $35.00. Additional support is found at $34.75, with a further drop to the 50% retracement level at $34.45 signaling more downturn. If silver attempts to recover above $36.00, it may face resistance in the $36.40 to $36.50 range. A sustained breakthrough could shift momentum towards bullish traders, targeting $37.00 and higher. Silver’s price is affected by geopolitical tensions and the behavior of the US Dollar, with changes in industrial demand also influencing costs. The market’s reaction to technical levels and external factors will shape silver’s future direction. Currently, silver’s prices are hovering at the lower end of their recent range, with ongoing pressure felt over several sessions. The drop from multi-year highs has gained attention and has broken through both technical and psychological support levels, such as the 23.6% Fibonacci retracement. This pattern suggests that a reversal is not likely yet; instead, the trend seems to continue downward. On the charts, momentum oscillators on shorter timeframes like the 4-hour show a clear bearish trend. Since falling below $37.00, bears have regained control, evidenced by a downward bias in price action and a lack of support from demand. The recent movement below the 100-period simple moving average suggests trouble ahead; this average often serves as a key reference for mid-range traders. Remaining below this level opens the possibility of testing the $35.15 mark, and potentially lower levels at $34.75 or $34.45 if selling pressure persists. These levels are not picked randomly; they align with key retracement zones from previous rallies where price has often paused or reversed. If we revisit these levels, it would indicate more than just daily fluctuations; it would suggest a change in market sentiment that has been riding high since early May. We’re also closely watching the $36.00 level. This price point has repeatedly indicated whether stabilization attempts gain traction or fail quickly. A bounce above may only be short-covering unless the price convincingly holds above $36.50. Short-term traders may see a recovery opportunity, but without consistent buying support, we should approach any rebounds cautiously. A significant shift toward the upside cannot be expected until $37.00 is breached with volume and follow-through. It’s important to remember that silver doesn’t trade in isolation. As an industrial material and a quasi-monetary asset, it reacts in complex ways. Currently, external factors, especially geopolitical stress and changes in dollar flows, are affecting how charts behave. A stronger US Dollar puts pressure on silver, while cooling tensions can reduce safe-haven demand. Traders need to consider these external macro cues alongside technical indicators that may signal changes. As market positions adjust, we are monitoring how support and resistance levels hold up. The inability of silver to maintain February 2012 levels is significant; it shows potential overextension rather than underlying strength. Unless the broader context changes, we anticipate further tests of support, especially as sellers remain active for now.

here to set up a live account on VT Markets now