Silver price support test: Technical outlook

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Silver drops 2.45% today to $58.24

Highlights

Silver found renewed buying interest near $58.25 after a modest pullback, confirming intraday demand at lower levels.
Despite underlying support, price action remains under broader selling pressure following consolidation below the $59.00 technical zone.
Technical signals are broadly bearish, with downside momentum dominating and a 70% probability of further declines toward the $56.91–$59.57 range.

Fresh demand emerges at intraday lows amid prevailing selling

Silver attracted new buyers near the $58.25-$58.20 range after a modest pullback, reflecting fresh demand emerging at intraday lows, according to Fxstreet. Earlier in the week, market participants consolidated recent gains after the asset broke through the $59.00 confluence level, suggesting some technical support held on the initial retreat. Despite evidence of underlying buying interest, price action has remained under broader selling pressure.

Bearish momentum confirmed as oversold signals intensify

On the H1 chart, XAG trades below the MA-20, MA-50, and is also firmly below the MA-200. The Ichimoku Kijun at $59.48 stands as immediate resistance. For support, the near-term level is set at $56.91, while resistance remains close near $59.57. Momentum indicators confirm the negative backdrop: MACD and ADX continue to signal sell conditions, while RSI is at 31.78. Stoch RSI and CCI both highlight oversold levels, and Bull/Bear Power signals sellers are dominating short-term price action. The Awesome Oscillator confirms that bearish momentum is prevailing.

Further downside likely as resistance and support define risk

In the immediate term, XAG is expected to trade between $56.91 and $59.57, with a heightened probability of further downside—70% bias to declines and only a 30% chance of an upward reversal. A move above resistance at $59.48 would be required to trigger a bullish surprise scenario. If support at $56.91 is breached, a more pronounced bearish move could materialize, expanding the present volatility band.

Anton Kharitonov, expert at Traders Union, sees persistent technical weakness in silver despite short-term demand at lower levels. He highlights that price action remains capped by resistance, with indicators firmly bearish. Kharitonov remains cautious due to prevailing sell signals and the risk of a deeper decline if support breaks. "Until $59.48 is reclaimed, I expect the downside bias to persist in XAG."

Earlier, analysts noted that silver was exhibiting strong bullish momentum amid heightened safe-haven demand and consolidating within an established range. The recent shift in technical and momentum indicators now signals a potential downside break, making the $56.91 support crucial for traders monitoring further bearish developments.

Source of Data: XAG Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.