Silver (XAG/USD) experienced a sharp reversal, falling 3% to $75.40 after buyers were rejected at the 50-day Simple Moving Average (SMA) of $78.73, with geopolitical headlines influencing Thursday's price action [1]. Technical analysis indicates the formation of a bearish engulfing pattern on the daily chart, suggesting the potential for further losses ahead [1]. The 20-day SMA is identified as key support at $75.28, while immediate resistance is noted at the $75.00 psychological level [1].
On the hourly chart, the short-term downtrend persists after silver tested the 61.8% Fibonacci retracement from the day's high of $78.38 to the low of $74.19. The price has since extended its losses, moving past the 38.2% Fibonacci level, with attention now on the $75.00 mark and the daily low [1]. Should these levels be breached, the next targets are the April 13 daily low of $73.57 and the current week's low of $72.61 [1].
The article highlights that silver's price is influenced by factors such as geopolitical instability, US Dollar strength, industrial demand, and interest rates, but does not provide specific market reactions or analyst opinions beyond the technical outlook [1].
CONCLUSION
Silver's 3% decline and the emergence of a bearish engulfing pattern point to potential further downside, with key support levels in focus. Technical signals suggest traders should monitor the $75.00 level and subsequent lows for possible continued weakness.