Silver prices may find support near the 50-day EMA at $29.01.
Silver prices moved lower to around $29.60 per ounce in early European trading on Tuesday. Daily chart analysis shows that the price is bearish as the silver/dollar pair consolidates within a descending channel pattern. In addition, the 14-day relative strength index (RSI) is below the 50 level, indicating a confirmed downtrend.
The momentum indicator moving average convergence divergence (MACD) shows a bearish trend for silver. This configuration suggests that the overall trend may still be positive as the MACD line is above the midline. However, the momentum is weakening as the MACD line is below the signal line. If the MACD line crosses below the midline, it will further confirm that the downtrend is strengthening.
On the downside, silver prices may find short-term support near the 50-day exponential moving average (EMA) at $29.01. If this level is broken, the grey metal will face pressure and may test the area around the psychological price of $28.00 and then the lower boundary of the descending channel near $27.76.
In terms of resistance, silver prices may find a short-term obstacle at the important level of $30.00 and then the upper boundary of the descending channel at $30.50. If the latter is broken, silver/dollar may test the four-week high of $31.55.
