Silver Price Slides to $73 as $71 Support Becomes Make-or-Break
Silver (XAG/USD) slipped 2.1% on Thursday to trade near $73, putting bears within striking distance of the $71 swing low. A break would expose the long-term 0.618 Fibonacci retracement at $69.
Meanwhile, the daily Relative Strength Index (RSI) tests an ascending trendline that has guided momentum since late March. Traders now wait to see whether buyers defend the line or surrender it.
Silver Price Tests $71 Support on Daily Chart
The daily chart frames the setup clearly. Silver broke above a steep descending trendline on May 7. Price retested it as support on May 8, 19, and 20. It now approaches the trendline for a fourth test.
A hold at $71 would preserve the bullish reclaim and keep the door open to a retest of $83 resistance. Beyond that level, the 0.382 Fibonacci retracement at $89 becomes the next upside target.
A loss of $71 changes the picture entirely. The next major buyer interest sits at the long-term 0.618 Fibonacci near $69. The market last saw that zone during the February crash to $63.
The confluence at $71 makes this level the most important on the chart. It stacks the swing low, the descending trendline retest, and the gateway to deeper Fibonacci support into a single zone.
Daily RSI Clings to Its Ascending Trendline
The momentum picture mirrors the price chart. On the daily timeframe, RSI sits at 43. It presses directly against an ascending trendline that has guided every dip since late March.
That trendline acted as the springboard for the rally that lifted silver toward $86 in mid-May. A clean bounce from this level would keep the neutral-to-bullish structure intact.
A break, however, would mark the first failure of the trendline in two months. Such a loss would suggest daily momentum has flipped, opening the door to deeper declines over the coming weeks.
The 43 area also matters because it capped previous corrections in March and April. A third bounce from this zone would extend the multi-month base.
For now, both bulls and bears wait for confirmation.
XAG/USD 4-Hour Action Points Toward $71
The zoomed-in view leans bearish. The 4-hour XAG/USD chart shows Bollinger Bands expanding sharply as price slides toward the $71 floor. Such expansion typically signals strong directional conviction behind the move.
The most recent 4-hour candle closed at $73.16, with the lower band pushing down toward $72. That band lines up almost perfectly with the recent swing low.
Price already broke beneath the 4-hour middle band on May 27. That move signaled the consolidation around $76 had failed. Sellers have controlled every candle close since.
The 4-hour RSI has also dropped to 36, deep into bearish territory. Sellers would need to lose control above $76 for short-term momentum to neutralize.
Macro pressure adds weight to the bearish setup. Fed rate-cut odds for June have collapsed from 48% to under 8% after the hot April CPI print. That shift lifted the dollar and pressed dollar-denominated metals.
Silver has also lost its safe-haven bid this week as oil prices ease on US-Iran negotiations. That move turns the focus back to industrial demand, which has softened with weaker manufacturing data.
The next move depends on which technical line breaks first, the ascending RSI trendline or the $71 horizontal floor.
Don't Miss Today's Market Moves Start trading Forex, Gold & Crypto today Regulated platform | Fast withdrawals* The content presented above, whether from a third party or not, is considered as general advice only. This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.
