Silver (XAG/USD) declined to around $74.30 per troy ounce during European trading hours on Monday, following two consecutive days of gains. The metal is exhibiting a persistent bearish bias, trading within a descending channel pattern and remaining below both the nine-period and 50-period Exponential Moving Averages (EMAs), which are acting as resistance at $74.75 and $76.79, respectively [1]. The 14-day Relative Strength Index (RSI) stands at 47.16, just below the neutral band, indicating weak directional conviction but reinforcing the negative tone due to price action below key averages [1].
On the downside, silver may test support near the four-month low of $61.01, recorded on March 23. If declines continue, the next significant support lies at the lower boundary of the descending channel, around $47.10 [1]. Conversely, a sustained break above the confluence resistance zone—comprising the nine-day EMA, 50-day EMA, and the upper descending channel boundary at $78.90—could shift the bias to bullish, with potential targets at the three-month high of $96.62 (reached on March 2) and the all-time high of $121.66 (recorded on January 29) [1].
The article does not mention any immediate market reactions or analyst opinions but highlights that the current technical setup favors further downside unless key resistance levels are breached [1].
CONCLUSION
Silver is currently under pressure, trading near $74.30 with a bearish technical outlook and potential to test lower support levels if the downtrend persists. A reversal would require a decisive move above multiple resistance points. Market participants are likely to remain cautious until a clear directional signal emerges.