FX.co ★ Retired-Mogambo | XAG/USD, SILVER

Silver is still below the 200-day moving average and the uptrend line, two important long-term trend indications. Although there hasn't been much bearish follow-through thus far, each indicator recently exhibited hints of failing as support. The 200-day moving average, which is close to $69.08, and the March spike low of $61.01 provide a possible support zone. During that slide, silver had a chance to test support close to the 200-day average, but buyers intervened before it was hit, indicating underlying demand. Despite the recent drop below important trend indicators, this resilience keeps the long-term support zone intact. However, silver is expected to close below the uptrend line for the third session in a row and below the 200-day moving average for the fourth day in a row on Monday, indicating weakness. Since early April 2025, the uptrend line and 200-day average have provided support. These two long-term trend indicators are being tested for the first time this week. Silver has been trading on both sides of the 200-day moving average over the previous few weeks, creating confusion. Two weeks ago, a corrective low of $61.51 was established, which resulted in a swing low that was marginally higher than the March fall. A potentially bullish doji hammer candlestick pattern was also formed that week, with the price closing back above the uptrend line but staying below the 200-day average until later. Buyers may become more aggressive, raising the possibility of a bullish turnaround, if support can remain in the March 2025 price range. The weekly chart offers more context because the last few weeks' lows have found support close to the 50-week moving average, which is currently around $63.64. This strengthens the possibility of a long-lasting support zone. On the other hand, a clear breach below that region would confirm a loss of long-term support, strengthening the bearish view. With the exception of a few weeks in April 2025 when the price momentarily fell below it, the 50-week moving average has remained as support since it was recovered in March 2024.