Precious metals have been tossing and turning while the market mood keeps shifting nowadays.

What’s next for silver because it gears as much as test this former support zone?

Silver (XAG/USD) Every day Chart by TradingView

Risk-off flows from early last week kept silver below the support zone at $30.000, potentially turning this area right into a resistance level next.

The Fibonacci retracement tool on the most recent downswing on the each day chart reveals that this lines up with the 50% level, in addition to the pivot point ($29.096). Looking further back shows that this area previously held as resistance back in April.

Will it hold as a ceiling again this time?

Do not forget that directional biases and volatility conditions in market price are typically driven by fundamentals. For those who haven’t yet done your homework on silver and market sentiment, then it’s time to envision out the economic calendar and stay updated on each day fundamental news!

The 100 SMA is above the 200 SMA to hint that upside momentum remains to be present, and the gap between the moving averages is widening to reflect strengthening bullish vibes. Stay looking out for a move past the 61.8% Fib, as this might mean that silver bulls are able to keep charging until the resistance at R1 ($31.404) near the yearly highs.

However, if the realm of interest holds as resistance, be careful for a possible drop back to the swing low near S1 ($26.957) and even until the following floor at S2 ($24.909).

Just remember to keep close tabs on market headlines that might impact overall risk sentiment when trading commodities!