Silver Price Forecast: Can Bulls Push Beyond $38.64 Toward $39.52 Resistance?
Silver is at $38.46, down 0.28% on the day, after hitting resistance at $38.64. It has been up since early August...
Quick overview
- Silver is currently priced at $38.46, down 0.28% for the day, facing resistance at $38.64.
- The 50-period Simple Moving Average at $37.95 is providing support, while bulls remain in control despite cooling momentum.
- Key resistance levels are at $38.64, $39.05, and $39.52, while support levels are at $38.18, $37.52, and $37.03.
- Market conditions suggest that silver's strength is influenced by safe-haven demand and industrial needs, with potential pressures from stronger US economic data.
Silver is at $38.46, down 0.28% on the day, after hitting resistance at $38.64. It has been up since early August on a rising trendline and the 50-period Simple Moving Average (SMA) at $37.95 which is acting as support. Bulls are in control but momentum has cooled off after the recent upswing.
Technical Overview
Resistance is at $38.64. A break above this could take it to $39.05 and then $39.52 which has capped gains before. On the downside, support is at $38.18 where the trendline meets recent intraday lows. If this breaks, next supports are $37.52 and $37.03. A deeper decline could take it to $36.36 but that would require a bigger bearish move.
RSI is at 61.61, not overbought yet. There is room for more upside but be cautious if it approaches 70. MACD is positive with the signal line above zero, bulls are in control but the histogram is narrowing, could be consolidation before the next big move.
Market Context
Silver’s strength is partly due to demand for safe-haven assets in a global economic uncertain environment. Weakening of the US dollar or signs of slower economic growth could boost silver, especially as it also benefits from industrial demand in green energy sectors like solar panel production. But a stronger than expected US economic data or rising yields could pressure it in the short term.
Key Levels
- Resistance: $38.64, $39.05, $39.52
- Support: $38.18, $37.52, $37.03
Silver (XAU/USD) Outlook and Trade
Silver is bullish as long as it stays above the 50-SMA and the trendline. A move above $38.64 would likely trigger more buying to $39.05 and $39.52. A break below $38.18 could lead to profit taking and take it to $37.52 and possibly $37.03.
Buy on dips to $38.20-$38.30 with stops at $37.95 and target a break above $38.64. Sell on a confirmed rejection from $38.64 with weakening momentum indicators and target $38.18 and $37.52.
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