Silver prices experienced a second consecutive day of losses on Tuesday, falling by approximately 1.20% and dropping below the $34.00 mark. As trading begins in Wednesday’s Asian session, XAG/USD is hovering at $33.69, showing little change from the previous day’s close.
XAG/USD Price Forecast: Technical Outlook
While silver’s overall uptrend remains intact, technical patterns suggest a potential shift. The metal appears to be forming a ‘bearish wedge,’ a formation typically seen during downtrends, where it acts as a countertrend before sellers take control and drive prices lower.
The Relative Strength Index (RSI) is showing signs of increased selling pressure, though it remains in bullish territory for now.
In the short term, if XAG/USD falls below $33.47, the bottom trendline of the wedge could come into play. Should silver drop further beneath the $33.00 level, it could test the 50-day Simple Moving Average (SMA) at $32.41.
However, if silver manages to break above the $34.00 level, bullish momentum would likely persist, potentially pushing the price to challenge the March 28 peak of $34.58.
