Silver has been under heavy selling pressure for the third consecutive day, pushing prices down to over a one-week low around $35.65 during the Asian session. The current decline follows a retracement from a high unseen since February 2012.

Technically, silver’s retreat below the $37.00 mark earlier and the 23.6% Fibonacci retracement level hints at a bearish trend. Oscillators on the 4-hour chart show negative momentum, indicating the potential for further losses. A decisive break below the mid-$35.00 range or the 100-period SMA on the 4-hour chart may precede deeper declines.

Should the downward movement continue, silver could reach the 38.2% Fibonacci level around $35.15, extending to the psychological $35.00 mark. Further support lies at $34.75, with a drop to the 50% retracement level at $34.45 signalling further downturn.

A recovery attempt above $36.00 might encounter resistance between the $36.40-$36.50 region. A sustained break could shift momentum towards bullish traders, targeting $37.00 and higher levels.

Silver’s price is influenced by geopolitical tensions and US Dollar behaviour, with industrial demand changes impacting its cost. The market’s response to technical levels and external factors will determine silver’s next direction.

With prices now drifting towards the lower end of their recent range, we’ve been seeing persistent pressure building over several sessions. Silver’s retreat from multi-year highs has not only caught attention but has also broken under both technical and psychological levels that normally act as stabilisers, such as the 23.6% Fibonacci retracement. From our perspective, this pattern doesn’t suggest a reversal just yet — rather, the path of least resistance still appears downward.

On the charts, momentum oscillators on shorter timeframes like the 4-hour clearly lean bearish. There’s no ambiguity in how price has been reacting since slipping under $37.00 — bears have retaken control, layered underneath by a declining bias in price action and a lack of demand support. The recent move below the 100-period simple moving average is more telling than it may seem at first glance; that average often acts as a guidepost for mid-range traders. Holding below that area leaves the door open for testing the $35.15 region, possibly lower towards $34.75 or $34.45 if supply pressures persist.

These levels aren’t chosen arbitrarily. They sit right at key retracement zones from the prior rally, where the market has paused or reversed in past cycles. Should we reach those depths again, it would reflect more than just daily noise — it would suggest a revaluation of sentiment that had been riding high on gains since early May.

We’re also paying close attention to that $36.00 handle. That level has repeatedly determined whether attempts to stabilise gather strength or unravel quickly. A bounce above it could merely be short-covering unless price convincingly holds above $36.50. Short-term players might eye that recovery window, but until bids return with lasting conviction, we would treat rebounds cautiously. No meaningful shift towards upside engagement can be seen unless $37.00 is broken with volume and follow-through.

It’s helpful to remember that silver doesn’t trade in a vacuum. Its role as both an industrial material and a quasi-monetary asset makes it reactive in layered ways. At present, we’re navigating a time where external drivers — particularly geopolitical stress and shifting dollar flows — are adding weight to how charts develop. When the US Dollar firms, silver struggles. When tensions cool, safe-haven demand takes a step back. Traders watching technical levels must continually balance that with external macro cues that can overshadow pure chart signals.

As positioning adjusts, we’re watching carefully how these support and resistance zones hold up. The fact that silver couldn’t maintain February 2012 levels is telling — it implies overextension rather than strength above fundamentals. Unless the broader context shifts, we expect further tests of support, particularly as sellers remain the active party for now.