Silver’s recent rally hit a significant roadblock at $38.51, confirming that the level will act as near-term resistance. While the precious metal remains in an overall uptrend, it faces near-term pressure, with critical support levels at $37.08 and $36.21 to watch as potential turning points for the market.
📉 Price Action and Technical Analysis
Silver’s recent price movement began with a bounce from support near the 50-Day MA, driving prices up. However, the rally stalled last week at $38.51, which acted as resistance after being tested previously. This marked the near-term ceiling, and on Monday, the price slipped to $37.56, marking a four-day low and closing below the 20-Day MA at $38.07.
- 20-Day MA: Currently at $38.07, acting as short-term resistance.
- 50-Day MA: Sitting at $37.08, acting as immediate support.
The retreat below the 20-Day MA signals loss of short-term buying momentum, but the broader bullish trend remains intact, as long as support levels hold.
🧐 Support and Resistance Levels to Watch
- Key Support Levels:
- $37.08 (50-Day MA)
- $36.21 (major support and 78.6% Fibonacci retracement from prior move)
A breakdown below $37.08 and $36.21 would signal a potential shift toward bearish momentum, with a deeper retracement phase becoming more likely.
- Resistance Level:
- $38.51 (recent resistance point)
A decisive close above $38.51 would improve the bullish outlook, potentially pushing silver toward previous swing highs and extending the uptrend.
📊 Silver’s Medium-Term Outlook
The overall bullish trend, initiated from the April swing low at $28.32, remains intact. However, the current price action suggests silver is consolidating, with marginal changes in price over the past two weeks, indicating sideways movement. The $36.68 low on the weekly chart is a crucial pivot for tracking momentum.
- Weekly Close Below $36.68: A break below this level would trigger a bearish signal, potentially increasing selling pressure.
🔮 Outlook Summary
Silver remains in an uptrend, but the near-term bias is cautious, with resistance at $38.51 and support at $37.08 and $36.21. The next breakout or breakdown could determine the direction of silver’s move for the coming weeks.
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