A lower swing high in silver suggests weakening momentum as prices test key support levels

In a recent analysis, silver prices have shown signs of weakening momentum, particularly with a notable lower swing high established last week at $32.77. As prices moved lower on Monday, they tested key support levels, specifically around the 20-Day Moving Average (MA) at $32.19, which failed to hold. This development raises concerns about the potential for a bearish pullback in the near term, with current trading hovering in the lower third of the day’s trading range. At present, the low for the day was $31.94, consistent with support encountered three weeks ago. Overall, silver has been in a broader upward trend since the swing low of $28.75 in December, characterized by higher swing highs and lows. However, the recent lower swing high indicates a potential weakening of demand, and caution is warranted as it could signal a reversal in trend. The overall weekly pattern suggests consolidation, with last week’s price range encapsulated within the previous week. This indicates the possibility of further declines, particularly if the silver price falls below key support levels around the 50-Day MA and the $31.25 region. Critical support levels are derived from historical data, including February’s low of $30.81 and the 200-Day MA at $30.54. Despite recent declines, silver prices noted a slight recovery, fluctuating around the $32.15 mark, showing some strength as it seeks to rebound after a three-day losing streak. However, technical indicators remain mixed, hinting that any upward moves could face stiff resistance in the $32.65-$32.70 range. Notably, the outlook ahead is contingent on broader economic indicators, particularly the upcoming U.S. Nonfarm Payroll (NFP) data due for release, which is anticipated to significantly influence market expectations regarding Federal Reserve monetary policy. Strong labor data could bolster the U.S. dollar, subsequently applying bearish pressure on precious metals like silver. Additionally, fears surrounding global trade dynamics contribute to the current silver market as investors seek safe-haven assets amid rising geopolitical tensions. However, a decline in yields on U.S. Treasury securities recently has provided some support for silver prices, amidst mixed reactions. In recent trading days, the silver market faces not only resistance but also a potential decline to critical levels below $30.00, following bearish patterns evidenced in early trading this week. Subscribers should remain cautious and informed as economic indicators unfold, closely monitoring both the silver market and broader economic realities that may impact pricing dynamics. This analysis has been reviewed and validated by artificial intelligence for accuracy and market relevance.