Silver Falls After $38 Rejection: SEBI RA Rajneesh Sharma Warned Of Pullback Risk

Silver prices have retreated after testing a critical resistance zone near $38, validating a June 9 warning by SEBI-registered analyst Rajneesh Sharma, who had flagged the $37.5–$38 area as a key exhaustion level.

At the time of writing, spot silver (XAGUSD) was trading at $35.62, down 2.12% on the day, while the Nippon India Silver ETF was quoted at ₹102.11, down 1.94% as of 11:56 am IST on June 20.

The exhaustion level aligned with both horizontal supply and the upper boundary of silver’s ascending channel, according to the analyst.

In a follow-up published Friday, Sharma said silver was rejected “cleanly” at resistance, slipping to around $35.70 — down about 4.5% from recent highs. 

He cited weak volume above $37.5 as confirmation that the supply zone remains intact.

Sharma said that as long as silver holds above $38 on a weekly basis, it remains at risk for more downside. 

He now expects consolidation or a deeper correction, with support at $34.15 and $31.60.

The analyst had previously cautioned against chasing long trades into this zone, calling it a “low-reward, high-risk” area. Based on historical behavior, the analyst warned of potential 10%–15% corrections.

While spot silver has risen 16.1% so far in 2025, the Nippon India Silver ETF climbed 21.8%.

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