Silver (XAG/USD) extended its winning streak on Monday, climbing to $40.50–$40.55 per ounce, marking its strongest level since September 2011. The rally comes as bullish technical signals and strong investor demand continue to support the white metal’s upward trajectory.
Silver Extends Breakout Beyond Key Levels
Last week’s decisive breakout above $39.00 and the multi-year resistance at $39.50 opened the path for further gains. Clearing the psychological barrier of $40.00 gave bulls additional confidence, driving prices to new decade highs.
Technical indicators remain supportive of the bullish trend. Oscillators on the daily chart point higher, confirming strong momentum behind the move.
RSI Signals Overbought Conditions
Despite the rally, the Relative Strength Index (RSI) on the daily chart is now approaching the overbought zone. This suggests that silver may pause for consolidation or experience a modest pullback before resuming its upward climb.
However, any correction is likely to attract fresh buyers, with immediate dip-buying interest expected near $40.00. Strong support also sits at $39.50, now acting as a key floor for short-term price action.
Key Resistance and Upside Targets
- Immediate resistance: $40.50–$40.55 (Asian session high)
- Next target: $41.00 round figure
- Further upside: $41.50 resistance zone
A sustained break above $41.50 could pave the way for a stronger rally, extending silver’s bullish cycle in the coming weeks.
Downside Levels to Watch
If silver fails to hold above $40.00, the next key support lies at $39.50. A convincing break below this base could trigger technical selling, dragging prices toward deeper levels in the short term.
Outlook: Bulls in Control, Pullbacks Seen as Buying Opportunities
With silver trading at its highest level in nearly 14 years, the broader technical setup remains strongly bullish. While short-term pullbacks cannot be ruled out, the overall momentum favors continued gains. As long as silver holds above $39.50, the path toward $41.00 and beyond remains open.
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