Silver Price Holds $37.86 as Bulls Eye $38 Breakout
Silver (XAG/USD) is trading at $37.86 after pulling back from recent highs, with the market consolidating after last week’s break...
Quick overview
- Silver (XAG/USD) is currently trading at $37.86, having pulled back from recent highs and is consolidating after breaking below an ascending channel.
- The key short-term focus is on reclaiming the 50 period Simple Moving Average at $38.03, which has turned from support to resistance.
- Momentum indicators suggest a bearish bias, with selling pressure easing but buyers yet to gain control, as silver faces headwinds at the $38.03 resistance level.
- The outlook remains neutral to bearish unless silver can break above $38.03, with potential retests of lower support levels if rejected.
Silver (XAG/USD) is trading at $37.86 after pulling back from recent highs, with the market consolidating after last week’s break below the ascending channel. The short term is all about reclaiming the 50 period Simple Moving Average (SMA) at $38.03 — a level that was strong support and is now resistance.
The bigger picture is cautious. While silver hasn’t fallen to $37.31 support, it hasn’t shown the conviction for a sustained rally. This pause comes before US inflation data which will set the tone for precious metals in the coming days.
Momentum Signals Lean Bearish but Softening
Momentum indicators show selling pressure is easing but buyers haven’t taken control:
- RSI (46.66): Recovering from oversold but still below 50, mild bearish bias.
- MACD: Negative momentum is easing, histogram bars are contracting, no bullish crossover.
- Price Structure: Lower highs since August 5, buyers are facing headwinds especially if $38.03 holds as resistance.
If silver can close above $38.03 it could go to $38.50 and possibly $39.04. If not, it may retest $37.31 and possibly $36.80.
Silver Key Levels and Trade Outlook
Silver is neutral to bearish unless buyers can break above the $38 handle. For now traders are watching price action around the 50 SMA for direction.
Resistance: $38.03, $38.50, $39.04
Support: $37.31, $36.80, $36.24
A short term bullish case only if we get a clean break and close above $38.03, preferably on rising volume. If rejected at this level it may trigger fresh selling to the lower supports.
Bottom Line: Silver is at a crossroads, $38.03 is the pivot. A break could revive the rally, rejection may extend the consolidation or even push prices back to recent lows.
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