Silver Price reverses as bearish-engulfing pattern hints at further losses

💡 DMK Insight

Silver’s rejection at the 50-day SMA is a red flag for bulls right now. Trading at $75.40 after a 3% drop, XAG/USD is clearly feeling the pressure from geopolitical tensions, which often lead to risk-off sentiment. This rejection at the $78.73 level indicates that buyers are struggling to gain traction, and if this trend continues, we could see further downside. Watch for support around $74.50; a break below that could trigger more selling, especially if broader market volatility increases. On the flip side, if silver can reclaim the 50-day SMA, it might signal a potential reversal, but that seems unlikely given the current sentiment. Keep an eye on related assets like gold, which often moves in tandem with silver. If gold prices start to falter, silver could follow suit. For now, traders should monitor geopolitical developments closely, as they could create sharp price swings. The immediate focus should be on the $74.50 support level—if it holds, there might be a chance for a bounce, but if it breaks, look out below.