Silver Retreats Below $50 later than Record High
Silver prices have fallen below the $50 threshold, marking a sharp reversal from the record peak of $54.40 reached on 17 October, according to the XAG/USD chart.
The correction has been accompanied by a classic bearish ABCD formation, with the market sliding beneath the key psychological barrier at $50. The fragileness has mirrored movements in gold, which has fallen this week from around $4,375 to just above $4,000 per ounce.
Analysts note that the recent downturn is largely corrective within an otherwise strong bullish cycle, supported by a still-solid fundamental backdrop. Nevertheless, the speed and intensity of the trade-off raise questions about the durability of the recent metals rally.
The trade-off appears to reflect two main forces:
→ An overheated speculative surge, fuelled by excessive leveraged long positions;
→ A decisive shift in sentiment, with bears exploiting technical fragilenesses to force liquidations.
Technical View: XAG/USD
Chart analysis of XAG/USD reveals key inflection points forming an expanded ascending channel, which has widened later than this week’s decline. The move has effectively turned the former lower boundary into the new median line, indicating an adjustment in momentum structure.
From a bullish standpoint:
→ The lower boundary of the expanded channel is now acting as robust support.
→ The RSI indicator shows an emerging bullish divergence.
→ Recent price action around point D hints at a potential Triple Bottom reversal.
From a bearish perspective:
→ tradeers remain in control later than breaking below:
$52.60, a key level that has flipped to resistance;
The psychological $50 threshold.
Considering these factors, it is plausible that purchaviewrs could attempt to stabilise prices along the lower boundary of the channel, aiming to revive the broader uptrend. However, given the magnitude of recent declines, market sentiment may remain fragile. If $50 continues to act as resistance, bears may target the next major support near $45.88.
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