Silver Prices Show Vulnerability

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Silver Prices Show Vulnerability

Silver (Xag/Usd) Prices Show Vulnerability

Silver (XAG/USD) is ticking higher on Thursday and has already recovered a little bit from its 2-week lows near the $30.00 handle. For now, Silver (XAG/USD) is trading near $30.40, with a change of +0.35% for the day.

However, analysts believe that the recent price action of Silver lacks any conviction. This means the fresh recovery drive seen in the Silver (XAG/USD) may be short-lived.

$30.00 Remains An Important Support

The technical analysis shows that Silver bulls have failed to maintain the momentum near the $30.40 level. So, if the Silver (XAG/USD) breaks below the trading range, it will provide a fresh trigger to the bears.

Meanwhile, the D1 chart of Silver (XAG/USD) shows that momentum oscillators are neutral. So, it makes sense to wait as sellers will drag the white metal below the $30.00 once again.

Once the $30.00 is lost to the bears, the next horizontal support will be at $29.70, and then the next one will be around $29.15.

decisive break of the $29.00 will expose June's low near the $28.60 - $28.55 region. Once this level comes to attention, it will be a matter of time before the $28.00 level where the 100-SMA is located will be tested by the bears.

To conclude, the white metal is showing bullish momentum in the short term, but as the name implies, it will be short-term only once the $30.00 support is lost to the bears; an extended bearish leg will follow.

Another scenario is the successful break of the $31.00 resistance zone. This is a sign that there's sufficient demand for white metal, which will send it back to the supply zone at around $31.40.

Any more follow-through buying will expose the next targets at $31.80 and then the $32.00 handle. Beyond these, the mid $32.00s will also be an important area as that's also the YTD peak of Silver.

Subsequently, Silver can also cross $31.00 if we see some convincing bullish momentum in Gold, Copper, & other metals.

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