Usman Salis
Silver (XAG) just took a nasty hit, dropping to $36.89 and looking pretty beaten up after what was a solid uptrend. But here's the thing, this pullback might actually be setting up for a sweet reversal opportunity. With everyone getting spooked, we could be looking at a classic "be greedy when others are fearful" moment.
Silver Crashes to $36.89 But Key Support Levels Ahead
Silver's having a rough day, down 3.25% and sitting at $36.89. The technical guys are watching two big support zones: the 50-day moving average at $36.32 and potentially the 20-week MA way down at $34.00.
The drop from the recent high near $38.24 has been brutal, but here's what's interesting – these support levels line up perfectly with old resistance zones and heavy volume areas. That's usually where the smart money starts buying again. The mixed signals we're seeing (SELL at $36.89, BUY at $36.92) just show how choppy things are right now.
RSI Breakdown Points to Oversold Bounce Setup
Here's where it gets juicy – the Stoch RSI is telling a different story than the price action. While silver's getting hammered, the RSI breakdown below 45 is screaming "oversold," and momentum indicators are starting to diverge.
One trader's calling this accumulation phase, saying the asset is "getting lots of gas" for a potential reversal. Translation: while everyone's panicking and selling, the technical setup is actually looking pretty decent for a bounce. If this analysis holds up, we could see silver find its footing by mid-August and start climbing again.
Usman Salis
