The price of silver is currently experiencing a bearish trend within a defined range, with prices hovering around the 23.530 level. Notably, the price is positioned below both the 50 and 200 Day Moving Averages, indicating a clear bearish market sentiment.
Scenario 1: Downside Potential with Crucial Support Levels
In this scenario, the silver price may continue its bearish movement and decline to test the 23.434 level. A successful break below this level could further push the price lower to test the 23.341 level, followed by the critical 23.266 level. The 23.266 level is of utmost significance as a decisive breach could lead to a bearish momentum. In such a case, potential support areas at 23.730 to 23.579 might come into play, with 23.268 acting as a major bearish support zone.
Scenario 2: Upside Potential with Resistance Levels
Alternatively, the silver price could experience a temporary upward movement from the current level and attempt to retest the 23.712 level. Further bullish momentum may encounter resistance at the 23.829 level. If this resistance level is surpassed, the price may aim for the 23.969 level, followed by a major level to watch at 24.082. The 24.082 level is crucial, as a breakthrough could signal a potential bullish trend. Additionally, traders should keep an eye on the 24.119 level, and the uppermost resistance level at 24.203 for any signs of a market reversal.
At present, the short-term momentum for the silver market is indecisive, as the price moves between the defined range. Additionally, the Relative Strength Index (RSI) is in the oversold range, indicating a potential opportunity for a corrective bounce.
Key levels are 24,24.649,23.579,23.341,23.098
