Silver (XAG/USD) experienced a sharp decline late in the North American session, dropping by more than 6.80% in a single day and poised to finish the week with losses exceeding 15.70% [1]. This marks the second-largest weekly loss for silver since the week ending January 30, when it fell by 17.39% [1]. At the time of reporting, XAG/USD was trading at $67.89, having plunged below key technical levels, including the 100-day SMA at $72.55 and the $70.00 mark, reaching a six-week low of $65.52 [1].
Technical analysis indicates that although silver turned bearish this week, its medium-term market structure remains upward biased as long as spot prices stay above the February 6 swing low of $64.10 [1]. Momentum currently favors sellers, with the Relative Strength Index (RSI) dropping sharply toward oversold territory [1]. A potential bottom could form if the RSI falls below 30 and then rebounds, but this would require consolidation and higher peaks and troughs in the RSI [1].
For a bullish recovery, silver needs to reclaim the $70.00 level and the 100-day SMA. If these are surpassed, the next resistance is at $77.98, which is the March 3 daily low [1]. The market implications are significant, as the sharp drop and breach of technical levels suggest heightened volatility and bearish sentiment in the short term [1].
No forward-looking statements or analyst opinions are explicitly provided in the source, but the technical outlook suggests that bulls could regain control if key levels are reclaimed [1].
CONCLUSION
Silver has suffered a substantial decline, breaking below critical support levels and posting its second-largest weekly loss since January. The market is currently bearish, with momentum favoring sellers, but a recovery is possible if silver reclaims the $70.00 mark and the 100-day SMA. Investors should monitor technical indicators closely for signs of a potential bottom.