On Tuesday (June 25th) during the Asian market session, spot silver fell rapidly in the short-term, and is currently near 29.25 USD/oz, with a daily decline of 1%. FXStreet analyst Christian Borjon Valencia wrote the latest article on Tuesday, analyzing the technical trend of silver prices.

(Source: 24K99, 15-minute chart of spot silver)

Valencia pointed out that the technical outlook shows a bearish engulfing pattern since last week, and the relative strength index (RSI) indicates a bearish momentum.

Spot silver closed up 0.1% on Monday, at 29.56 USD/oz. Previously, silver prices plummeted 3.88% at the Friday close last week.

Valencia wrote that last week, the silver price formed a bearish engulfing chart pattern, opening the door for further declines. As the relative strength index (RSI) turns bearish, the momentum shifts to the sellers, paving the way for further declines.

Valencia said that in this context, the first support level for silver prices will be the 50-day moving average (DMA) at 29.14 USD/oz, followed by 29.00 USD/oz. If it falls below these levels, it may cause silver prices to test the low point of 28.66 USD/oz so far this month, and then fall towards the 100-day moving average of 26.82 USD/oz.

(Daily chart of spot silver, source: FXStreet)

Valencia added that on the other hand, if the silver price resumes its upward trend, the next resistance level is the high point of June 7th at 31.54 USD/oz. If that resistance is broken, the silver price will target 32.00 USD/oz, and then challenge the highest point so far this year of 32.51 USD/oz.

At 09:52 Beijing time, spot silver was reported at 29.26 USD/oz.