Chart: Silver (XAG/USD) Approaching an area of ​​interest

Precious metals have turned upside down as the market mood continues to shift these days.

What’s next for silver as it prepares to test this former support zone?

Silver (XAG/USD) daily chart from TradingView

Risk-off flows from early last week kept silver below the $30,000 support area, possibly turning this area into a resistance level going forward.

The Fibonacci retracement tool on the latest low on the daily chart shows that it lines up with the 50% level as well as the pivot point ($29.096). Looking further back, it shows that this area previously held as resistance in April.

Will he hold it as the ceiling again this time?

Remember that directional biases and market price volatility conditions are usually driven by fundamentals. If you haven’t done your homework on silver and market sentiment yet, then it’s time to check the economic calendar and catch up on the daily fundamental news!

The 100 SMA is above the 200 SMA to suggest that an upward momentum is still present, and the gap between the moving averages is widening to reflect strengthening bullish vibes. Stay on the lookout for a move beyond the 61.8% Fib as this could mean that silver bulls are poised to continue their charge to resistance at R1 ($31.404) near yearly highs.

On the other hand, if the area of ​​interest holds as resistance, watch for a potential drop back to the swing low near S1 ($26,957) or even to the next floor at S2 ($24,909).

Be sure to keep a close eye on market headlines that could affect your overall sense of risk when trading commodities!