FX.co ★ HiDe_N_SeEk | XAG/USD, SILVER

Silver After initiating a rising wedge pattern a few weeks ago, silver is still exhibiting traditional negative price behavior. On Friday, the first decline that followed the bearish signal encountered resistance close to the 20-day moving average. Sellers regained control on Monday, setting a lower swing high at $76.98 and initiating a one-day bearish reversal. The short-term negative trend is likely to persist if earlier support is verified as resistance; this scenario started to materialize at the 20-day moving average over the last few days. Following the initial leg down from the wedge, the next lower support zone is located close to $69.50, which is the intersection of the midline for a rising trend channel and the 61.8% Fibonacci retracement. However, it appears likely that lower price levels may be tried before the slide is finished given the bearish wedge signal and the implications of the rising channel. The 78.6% Fibonacci retracement at $65.74 is a possible objective if support in the 61.8% zone fails. A downside target close to the swing low and bottom of the wedge formation at $61.00 is suggested by the wedge pattern. With the exception of the 200-day moving average, which is currently at $62.92 and rising, that would make sense. Since it was last recaptured in April 2025, it has not been touched and represents long-term dynamic trend support. As the price gets closer to it, this raises the possibility that it may serve as a significant support zone. Additionally, keep in mind that the potential support this confluence zone may represent is stronger the closer the 200-day moving average is to the 78.6% retracement zone. Although silver may still encounter resistance around the 20-day moving average, the 100-day moving average at $79.90 becomes a crucial barrier level if it is surpassed to the upside. In other words, unless silver maintains a recovery of the 100-day moving average, the wedge signal's bearish connotations are still applicable.