Silver Price Forecast – Buyers Hold $49.06 Support as Trendline Defends Uptrend
Silver (XAG/USD) spent the early European session consolidating just under $50, recovering from last week’s sharp decline...
Quick overview
- Silver (XAG/USD) is consolidating below the key supply zone at $50.40–$50.10 after a sharp decline last week.
- The long-term ascending trendline remains intact, with buyers actively defending the $49.06 pivot level.
- Short-term pressure is evident as silver trades below its 20-EMA, indicating a lack of bullish conviction.
- A breakout above $50.44 could signal a bullish trend, while a drop below $49.06 may lead to further declines.
Silver (XAG/USD) spent the early European session consolidating just under $50, recovering from last week’s sharp decline but still trading below the key supply zone at $50.40–$50.10. This zone has rejected multiple attempts over the past 48 hours, keeping bulls cautious and limiting upside momentum.
Despite the pullback, the broader structure still leans constructive. The long-term ascending trendline from early November continues to hold, with buyers stepping in aggressively near $49.06, a level that has now acted as a pivot for three separate rebounds.
Silver (XAG/USD) Key Technical Structure: Trendline + EMA Confluence
On the 2-hour chart, silver remains pinned below its 20-EMA, reflecting short-term pressure. Price action has printed a cluster of small-bodied candles and lower wicks, suggesting buyers are defending the trendline but lack conviction for a clean break higher.
The RSI has climbed back toward 46, recovering from oversold territory but still below neutral—signaling stabilizing momentum but no clear bullish shift yet.
[[XAG/USD-graph]]
Technical highlights:
- Ascending trendline support holding from $47.99 → $49.06
- Major overhead supply at $50.40–$50.10
- EMA resistance obstructing early bullish attempts
- No bullish divergence on RSI, but bearish momentum has cooled
Until silver closes above the green supply zone, rallies will likely face pressure from short-term sellers.
Levels to Watch This Week
- Resistance: $50.10, $50.44, $52.19, $53.23, $54.42
- Support: $49.06, $47.99, $47.03
The $49.06 level is pivotal: a break below it risks a deeper pullback toward $47.99, where the next demand pocket sits.
Silver (XAG/USD) Trade Setup: Break-and-Retest Strategy
A clean breakout from the supply zone offers the most reliable setup.
Bullish Scenario:
- Wait for a close above $50.44 with strong volume
- Ideally confirmed by a bullish candle (engulfing, three white soldiers)
- Upside targets: $52.19, then $53.23
- Stop: below $49.90
Bearish Scenario:
- A break below $49.06 exposes immediate downside
- Confirmation via a shooting star or three black crows strengthens the signal
- Downside target: $47.99, then $47.03
- Stop: above $50.20
Silver is in a transition phase: trendline support holds, but the EMA ceiling and supply zone remain obstacles. A breakout will dictate the next trend leg.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Save