On Wednesday, July 17th, despite the weakening of the US dollar, spot silver still plummeted by 3%. FXStreet analyst Christian Borjon Valencia wrote a new article analyzing the technical trend of silver prices.

Valencia stated that with the profit-taking pressure, silver prices plummeted more than 3% on Wednesday and have fallen to below $31.00 per ounce.

On Wednesday, spot silver closed down 3.01% at $30.29 per ounce, with the lowest silver price dropping to $30.03 per ounce during the session.

Valencia wrote that silver prices have fallen sharply from around $31.42 per ounce this week, as traders took profits after silver prices rose more than 10% since early July. Despite some retracement, silver is still inclined to rise, supported by the 50-day moving average (DMA) of $30.12 per ounce. The silver price fell below this level on Wednesday and touched a low of $30.05 per ounce.

From a momentum perspective, sellers are gaining traction, with the relative strength index (RSI) falling but still in the bullish zone.

Valencia pointed out that on the downside, silver prices must fall below the 50-day moving average to continue to be bearish, followed by a key support level of $30.00 per ounce. If these two levels are broken, the next support level will be the low of June 26th at $28.57 per ounce.

If silver weakens further, silver prices may fall to $28.00 per ounce.

(Daily chart of spot silver, source: FXStreet)

Valencia added that on the other hand, if buyers enter the market and push silver prices above $31.00 per ounce, they may target the high of July 11th at $31.75 per ounce. If it continues to rise, the silver price may rise to $32.00 per ounce.