Silver (XAG/USD) extended its rally for the third consecutive day on Friday, scaling to a 14-year high of $42.00 during the Asian session. This marks its strongest level since September 2011, driven by continued bullish momentum in the precious metals market.
🔹 Technical Overview
From a technical perspective, silver is trading near the upper boundary of its month-to-date ascending trend channel. A decisive breakout above $42.00 could open the door for further gains, targeting resistance at $42.65 and $43.00. The September 2011 swing high at $43.40 is also back in focus for long-term traders.
However, the Relative Strength Index (RSI) on the daily chart is now in slightly overbought territory, signaling caution. This suggests a short-term consolidation phase or minor correction could emerge before the next leg higher.
🔹 Support Levels in Focus
On the downside, immediate support lies at $41.40, with stronger support at the $41.00 mark, backed by the 200-hour Simple Moving Average (SMA) and the channel’s lower boundary. If silver slips below this zone, technical selling could drive prices toward $40.50–$40.55, and possibly as low as $40.00–$39.50.
🔹 Outlook
Despite short-term risks of a pullback, silver remains firmly bullish in the medium to long term. Buyers are expected to treat dips toward $41.00 as fresh buying opportunities, keeping momentum tilted toward a potential breakout above $42.65–$43.00.
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