Silver Price Forecast: XAG Remains Bearish As ‘Evening Star’ Forms

Silver (XAG/USD) price tumbles nearly 3% on Tuesday as market mood turns dismal due to heightened tensions in the Middle East, following Iranian attacks on two vessels in the Strait of Hormuz. At the time of writing, XAG/USD trades at $60.26, after peaking at around $62.16.

XAG/USD Price Forecast: Technical outlook

Silver remains downward-biased as long as it fails to clear a downward resistance trendline in the $64.00-$65.00 range, which could open the door to further upside.

Nevertheless, bulls are not out of the woods, as another key resistance level remains to be cleared, with the $70.00 psychological level up next, ahead of the crucial 200-day Simple Moving Average (SMA) at $70.13. If these key levels are broken, Silver could rally towards the 50- and 100-day SMAs, each at $70.79 and at $74.64.

On the flip side, it’s worth noting that an ‘evening star’ formed, which opens the door for further downside. If XAG/USD dives below the July 2 daily low of $59.00, this opens the door to challenge the June 30 daily low of $56.61 ahead of the $55.00 psychological level.