- Silver begins the week on a downtrend but remains above the $33.00 level.
- The current technical configuration advises caution for bears, suggesting they should hold off on positioning for additional losses at this stage.
- A sustained breach below the $33.00 threshold could signal the potential for a significant correction.
Silver (XAG/USD) is experiencing fresh selling pressure during the Asian session on Monday, currently trading around the $33.30 mark, reflecting a decline of nearly 1.25% for the day. Although the white metal has dipped, it remains above last week's low of approximately $33.10-$33.00, which suggests caution for bearish traders.
Technical indicators on the daily chart, while losing positive momentum, still indicate positive territory. This underscores the need to wait for a decisive break below the $33.00 level before committing to a further downward move following last week's retreat from the highest levels since October 2012. A sustained move below the $32.75-$32.65 range, which has shifted from resistance to support, would reinforce a negative bias, increasing vulnerability for XAG/USD.
Should the price continue to decline, it may test the intermediate support around $32.20-$32.15 before approaching the key psychological level of $32.00 and the $31.70-$31.65 region. If bearish momentum persists, the silver price could extend its fall towards the $31.00 mark, en route to the $30.50 area and the monthly swing low near the $30.00 psychological level tested on October 8.
Conversely, the $33.65 horizontal zone has emerged as an immediate resistance level. A breakout above this could allow XAG/USD to reclaim the $34.00 mark and push towards the $34.30-$34.35 supply zone. Continued bullish momentum might enable traders to challenge the psychological $35.00 mark and target the swing high from October 2012, situated around $35.35-$35.40.
Silver 4-Hour Chart
