Silver prices traded near $28.90 on Wednesday, marking a 0.21% increase as thin holiday trading and subdued market activity defined the session.

With March silver futures hovering at $30.01, the precious metal remains in a consolidation phase following a two-month downtrend. Traders and investors are watching U.S. economic data, such as the Chicago ISM business survey and pending home sales, for fresh catalysts to drive market sentiment.

Asian and European stock indexes showed mixed performances, while U.S. stock futures pointed to weaker openings. The U.S. dollar index weakened slightly but remains on track for its best annual performance in a decade. Meanwhile, benchmark 10-year Treasury yields rose to 4.6%, reflecting investor caution, while crude oil prices held steady at $70.75 per barrel.

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Key Technical Levels: Support and Resistance

Silver is holding above its immediate support level of $28.82, with additional support zones at $28.43 and $28.05. On the upside, immediate resistance is observed at $29.54, with higher thresholds at $30.22 and $30.50. The pivot point at $29.27 remains critical for short-term price direction.

March silver futures highlight a bearish technical structure, with bears targeting a downside objective at $27.39, the August low. Meanwhile, bulls aim to push prices above $31.00, a level that could signal a reversal of the current downtrend.

Momentum Indicators and Market Sentiment

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The Relative Strength Index (RSI) stands at 34.62, suggesting oversold conditions that could spark a technical rebound. However, silver continues to trade below its 50-day EMA at $29.27, reinforcing short-term bearish sentiment. A breakout above immediate resistance could reignite bullish momentum, while a breach of key support levels may lead to further declines.

The market remains cautious as traders await macroeconomic developments and geopolitical news, both of which could significantly impact silver’s trajectory.

Key Insights:

• Resistance Levels: Silver faces immediate resistance at $29.54, with further barriers at $30.22 and $30.50.

• Support Zones: Critical support lies at $28.82, $28.43, and $28.05, stabilizing against extended losses.

• Momentum Indicators: RSI at 34.62 signals oversold conditions, while silver remains below the 50 EMA at $29.27, highlighting short-term bearish sentiment.

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.

His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.

His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.