■ Silver's pullback to $28.09 marks failure to sustain above critical $29 level,ethereum price inr suggesting bearish pressure may intensify.
■ The emerging 'dark cloud cover' candlestick formation points to potential trend reversal after recent highs.
■ Market attention shifts to $28 support zone, with technical indicators hinting at possible consolidation before next directional move.
The silver market witnessed notable volatility as XAG/USD retreated from intraday peaks near $29.01, registering a 2.63% decline. This downward movement coincides with strengthening US Treasury yields creating headwinds for precious metals. The current trading range around $28.09 reflects breakdown below several important technical levels that previously provided support.
Technical Perspective: Silver's Critical Juncture
Technical analysis reveals silver's inability to maintain altitude above the psychologically significant $29.00 barrier following its year-to-date peak at $29.79. This rejection has accelerated the downward trajectory toward the $28.00 handle, establishing conditions for potential extended weakness. The recent price action has carved out a concerning 'dark cloud cover' pattern that traders are monitoring closely, with confirmation potentially coming from a break below the April 15 low of $27.59.
While momentum indicators previously reflected strong bullish sentiment, the Relative Strength Index (RSI) has now exited overbought territory, contributing to silver's corrective phase. This technical reset suggests the possibility of consolidation or further retracement before buyers regain sufficient strength to retest the $29.00 resistance zone.
The immediate technical landscape identifies $27.59 as primary support, with additional floors emerging at $27.00 and the April 5 bottom of $26.29. Conversely, maintaining ground above $28.00 could pave way for challenges at resistance levels dating back to 2021, specifically the June 10 high at $28.28 and the May 18 peak at $28.74.
Market Dynamics Influencing Silver
Several macroeconomic factors are contributing to silver's current technical predicament. The metal's sensitivity to real yields remains pronounced, with recent Treasury movements creating valuation pressures. Industrial demand considerations also factor into the equation, though these longer-term fundamentals are currently taking backseat to technical developments and short-term positioning.
Trading volumes and open interest patterns suggest some profit-taking activity following silver's impressive run earlier this month. The commodity's historical volatility profile indicates that such pullbacks are characteristic during sustained trends, though the current technical damage warrants cautious monitoring.
Market participants are advised to watch for either confirmation of the bearish pattern through breakdowns below noted support levels, or alternatively, signs of stabilization that could precede another assault on resistance zones. The coming sessions should provide greater clarity regarding silver's intermediate-term trajectory.
