- Silver drops sharply, with a 3.13% decline from weekly highs, driven by profit-taking.
- Despite the fall, XAG/USD retains an upward bias, with support from the 50-day moving average at $30.12.
- Watch for potential bearish continuation below $30.00; resistance levels are at $31.00 and the July 11 peak of $31.75.
Silver prices tumbled from weekly highs hit on Tuesday at around $31.42 as traders took profits following a rally that lifted the grey metal’s prices more than 10% since the beginning of July. The XAG/USD trades at $30.28, down 3.13%.
XAG/USD Price Analysis: Technical outlook
Despite retreating, the XAG/USD is still upward biased, supported by the 50-day moving average (DMA) at $30.12, a level pierced during Wednesday’s session as Silver hit a daily low at $30.05.
From a momentum standpoint, sellers are gathering traction, with the Relative Strength Index (RSI) aiming lower yet remaining in bullish territory.
XAG/USD must clear the 50-DMA for a bearish continuation, followed by the $30.00 mark. If those two levels are surpassed, the next support would be the June 26 swing low of $28.57. On further weakness, Silver could fall to $28.00
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