Silver’s price continued its downward trajectory, reaching $57.17 after an unsuccessful attempt to consolidate above $59.50 resistance. Market analysts observed that the asset’s failed move sparked renewed selling, with bearish momentum dominating the recent sessions.
Analyst’s short strategy delivers results
Trading analyst David implemented a short position on XAGUSD at approximately $59.574, following multiple failed attempts by buyers to push the price above $59.823. The trade targeted a downside of $57.060, establishing a risk-to-reward ratio close to 1-to-10, commonly referred to as a 10R reward-risk setup.
The initial entry was based on a 30-minute chart, where resistance at $59.823 repeatedly forced the price lower. This pattern encouraged sellers to take control, confirming the planned bearish scenario. The precise levels highlighted in David’s analysis outlined the clear dominance of sellers on short-term timeframes.
The position and chart structure demonstrated that a breakdown materialized when the market failed to set new highs in the established rejection zone. This allowed sellers to dictate intraday direction and reinforced a sequence of lower highs and lower lows.
Technical traders often consider such high reward-to-risk setups effective because predefined entry and exit levels can simplify position management, ensuring both risk control and profit maximization are clearly identified in advance.
Breakdown follows repeated resistance rejections
Sellers managed to consistently defend the resistance between $59.57 and $59.82. After multiple failed attempts to climb higher, a break under the $59.20 support triggered rapid declines. The price dropped below $58.80, initiating another strong downward movement as seen on shorter timeframes.
The step-by-step descent continued through all trading sessions. Once the price fell through $58.10, a significant bearish engulfing candle drove the asset to lows near $57.40, with subsequent price stabilization forming around the $57.10 region.
This persistent downward sequence left bulls without momentum as sellers established control over the market.
Market indicators and perpetual data
On the daily chart, XAGUSD perpetual contracts listed on Binance were trading at $57.17, reflecting an increase of nearly 2.24% over the previous day. The average trading volume for the past month was noted at 9.5 million units daily, suggesting a broader bearish market sentiment, though not directly tied to individual trading setups.
Momentum indicators, including the daily Relative Strength Index (RSI), currently stand at 42.72, with its moving average at 41.57. Although the RSI has recovered from past oversold conditions, it remains below the key 50 level, indicating limited bullish strength at this stage.
Similarly, the Moving Average Convergence Divergence (MACD) remains under the zero line, with the MACD at –0.87 and the signal line at –1.22. A reading of 0.35 suggests some easing in bearish pressure, but it does not yet indicate a trend reversal.
Despite short-term recoveries, current technical indicators show that buying momentum has not yet returned and bears continue to exert control on the market.
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