What Happened
Silver (XAG/USD) suffered a heavy sell-off on Friday, dropping 6.02% from $83.47 to $78.44 per troy ounce. That’s a loss of roughly $5.03 per ounce in a single session — a significant move that signals renewed selling pressure in the precious metals market. For Australian traders, this also means any AUD-denominated silver positions felt the double impact depending on the AUD/USD rate at the time.
Key Levels
- Support 1: $78.00 — the psychological round-number floor just below current price. A close below this level would be a warning sign.
- Support 2: $75.00 — a deeper support zone and the next meaningful area where buyers may step in if selling continues.
- Resistance 1: $80.50 — the first overhead barrier traders will be watching for any bounce attempt.
- Resistance 2: $83.47 — Thursday’s closing price, now acting as strong resistance that bulls need to reclaim to restore confidence.
Technical Picture
Friday’s 6% drop is a significant bearish candle that likely breaks short-term moving average support. When a market falls this sharply in one session, it typically signals that sellers are in control and any short-term rallies are likely to be sold into. The RSI (Relative Strength Index — a measure of momentum on a 0–100 scale) may be approaching oversold territory near 30, which could attract short-term bargain hunters, but oversold conditions alone are not a reason to buy into a strong downtrend.
What Traders Are Watching
- A hold above $78.00 in coming sessions would suggest stabilisation and potential base-building.
- A break below $78.00 on volume opens the door to a test of the $75.00 level.
- Any recovery above $80.50 would be the first sign that buyers are returning to the market.
Bias
Bearish. A 6% single-session drop is aggressive and suggests strong selling conviction. Until Silver reclaims $80.50 or higher, the path of least resistance remains to the downside.
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