Precious metal retreats from weekly highs as risk appetite improves following trade deal developments
Chart patterns reveal conflicting signals between short-term bearish channel and 1000 dogecoin to usdlonger-term bullish flag formation
$31.70 support zone emerges as crucial battleground for market direction
The silver market (XAG/USD) experienced significant downward pressure during Monday's European trading session, with prices retreating from the psychologically important $33.00 level. This pullback represents the most substantial single-day decline in over a week, though the white metal found temporary footing near the $32.25 support area.
Technical examination reveals silver's repeated failure to breach the upper boundary of its current descending price channel. Momentum indicators across multiple timeframes have begun flashing warning signs, suggesting potential for extended weakness. However, the broader chart structure maintains elements of a bullish continuation pattern following April's rebound from yearly lows around $28.45.
Market participants should note the conflicting technical signals creating uncertainty in silver's near-term trajectory. The $31.70 level represents a critical support zone that previously attracted buying interest, with additional defense likely near the channel's lower boundary at $31.00. A decisive breakdown below this threshold could signal the start of more pronounced selling pressure.
Conversely, traders monitoring potential upside scenarios should watch for a convincing breakout above the immediate resistance at $32.65. Such a move could pave the way for retesting the $33.00 barrier, with successful clearance potentially accelerating gains toward the $33.70 intermediate target and beyond to $34.00.
Silver Market Technical Snapshot
Current price action shows silver consolidating below recent highs as traders weigh conflicting technical factors. The descending channel's upper boundary continues to cap rallies, while the broader bullish flag pattern suggests underlying strength. Market participants should monitor volume patterns and momentum indicators for confirmation of the next directional move.
Key support levels to watch include the recent swing low at $31.70, followed by the more significant $31.00 zone. Resistance remains firm near $32.65-$33.00, with a sustained break above this area potentially triggering short-covering rallies. The relative strength of these support and resistance zones will likely determine silver's trajectory in coming sessions.
