Silver (XAG/USD) faced selling pressure for the third consecutive session on Friday, sliding toward the $33.00 mark during Asian trading and approaching its one-week low from the previous day.
Technical Outlook: Bearish Momentum Builds
Silver has now fallen below the 23.6% Fibonacci retracement level of its February-to-March rally, signaling a potential for deeper losses. However, despite losing momentum, daily chart oscillators remain in positive territory, suggesting that further declines could find support near the 38.2% Fibonacci level at $32.90-$32.95.
A decisive break below this zone could trigger a sharper drop toward the 50% Fibonacci level at $32.50, with the next key support at $32.00, aligned with the 61.8% retracement level. A sustained move below this threshold would indicate a potential near-term top for silver.
Upside Potential: Resistance Levels to Watch
On the upside, the 23.6% Fibonacci level at $33.40 serves as an initial barrier. A breakout above the Asian session high of $33.55 could drive silver back toward $34.00, with the next resistance at the multi-month peak of $34.20-$34.25. Further gains would target the $34.55 and $34.85 levels, with a break above the latter potentially triggering fresh bullish momentum.
For now, silver remains vulnerable to further downside pressure, but key support levels could attract buying interest and limit losses.
