Silver Breaks $52.17 — 3 Key Patterns Point to $54 Upside Potential
Silver (XAG/USD) is currently trading around $52.17, & still looks pretty much like its been stuck in that long established channel.
Quick overview
- Silver (XAG/USD) is trading around $52.17, having recently hit resistance at $52.80, indicating potential profit-taking.
- The price trend remains bullish with higher highs and higher lows, supported by the 100-period smma at $47.47.
- A pull-back to around $51.50 could provide a better entry point for buyers if the channel structure holds.
- Traders should look for reversal candles at $51.50 to signal potential buying opportunities while maintaining a cautious approach.
Silver (XAG/USD) is currently trading around $52.17, & still looks pretty much like its been stuck in that long established channel. Recently though the price hit the resistance at $52.80 & we saw a bearish engulfing candle – which is often a sign that some people are getting a bit too greedy and want to take some profit. Even so, the trend still looks pretty up-beat, due to the fact we’re still getting higher highs & higher lows – showing the buyers are still firmly in control.
Down below the price the 100 period smma still looks like its doing a pretty good job of supporting the price at $47.47 – acting as a reminder that the big picture is still looking pretty healthy. If we do see a bit of a pull-back toward the mid-point of that channel near $51.50, it could give the buyers a cleaner entry point if the channel structure stays intact of course.
Momentum & Candles May be Signaling a Pause
The RSI is currently at 58. This is still a bit over 40, but it’s not in overbought territory above 70 any more so that’s a good sign. This suggests the current price move is likely to pause, rather than reverse altogether.
[[XAG/USD-graph]]
Now lets keep an eye out for some reversal candles forming at that $51.50 level – like a hammer, an engulfing pattern, or even a shooting star – anything that might suggest buyers are starting to get a bit more interested in buying again. That level also just happens to align nicely with the internal support level inside the channel.
Just keep an eye out for any doji or spinning top bars popping up around that level. Those can often indicate a bit of market indecision before a reversal.
Silver (XAG/USD) Trade Idea: Buying the Dip
Here’s a trade idea that tries to walk the line between being confident & cautious:
- If we see a reversal candle form between $51.50 & $51.70 then it might be worth getting long.
- Place your stop-loss just below $50.25 – down near the lower edge of the channel.
- Target $53.60 first, then if momentum really picks up you could push on up to $54.50-$55.30.
Since silver’s structure is still bullish – but also a bit corrective in the short term – this setup is all about buying the dips rather than getting too worried about setbacks. So long as the lower boundary of the channel holds the trend is going to keep going up, so use those pullbacks as chances to get in, rather than getting too worried about them.
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