Silver reclaimed some ground on Tuesday, trading near $58.10 per troy ounce, yet the metal stays trapped inside a descending channel that keeps sellers in charge. Momentum indicators point lower, with the daily chart flagging support at a seven-month low as the next test.
Silver climbed after two straight days of losses, but the rebound did little to loosen the bearish grip on the market. XAG/USD traded around $58.10 per troy ounce during European hours on Tuesday, holding within a descending channel on the daily chart. As long as price stays between those downward-sloping trendlines, sellers keep control of the momentum.
Momentum still tilts lower
The metal is trading below both its nine-period and 50-period Exponential Moving Averages, which keeps it under firm bearish pressure. That clustering of short- and medium-term EMAs above the price suggests any rallies are corrective rather than a genuine turn. Meanwhile, the 14-day Relative Strength Index sits at 37.04, below the neutral 50 line, hinting at lingering downside bias rather than outright oversold stress.
Where the levels sit
On the downside, XAG/USD may target immediate support at the seven-month low of $55.63, a level recorded on June 24. A further slide would drag the pair toward the lower boundary of the channel around $46.90.
The recovery has room to run before it changes the picture. The nine-day EMA at $59.37 marks the immediate barrier, followed by the channel’s upper boundary near $60.60. Only a break above the channel would open the door for a test of the 50-day EMA at $66.63.
Source: FXStreet
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