Silver Eyes $60.33 Breakout as Buyers Defend $57.50 and Momentum Rebounds
Silver holds near $58.26 as buyers defend key support at $57.50. Momentum improves, setting the stage for a breakout above $58.90 toward...
Quick overview
- Silver is currently trading near $58.26, maintaining its recovery within a rising channel since late November.
- The upper boundary at $58.90 poses a significant resistance, with consistent selling pressure observed at that level.
- Market sentiment remains supportive for silver, aided by a softer dollar and steady Treasury yields, indicating potential for gradual upside.
- Traders should monitor key levels, including price reactions at $58.90 and the 20-EMA at $57.52, to gauge future movements.
Silver steadied near $58.26 during Friday’s European session, extending its recovery inside a rising channel that has shaped price action since late November. After last week’s pullback, buyers returned with enough strength to keep the metal within its bullish structure.
The upper boundary near $58.90 remains a defining obstacle, with multiple rejection wicks highlighting consistent selling pressure at that level. Still, silver’s resilience shows traders aren’t ready to abandon the trend.
Market Sentiment Supports Gradual Upside
Silver’s recent move fits into a broader market backdrop where investors continue to treat precious metals as a stabilizing asset. While gold reacts more directly to Fed expectations and geopolitical developments, silver often benefits from the same risk-averse behavior.
This week’s softer dollar tone and steady Treasury yields helped keep silver supported above its short-term levels.
Momentum indicators also suggest that the pullback may have run its course. The RSI, now turning higher from 60, hints at steady buying interest without signaling overbought conditions. Traders are watching for confirmation through price action rather than relying solely on macro cues.
Silver (XAG/USD) Technical Setup Points to a Potential Breakout
From a technical standpoint, silver is positioned at a pivotal zone. The 20-EMA at $57.52 has acted as dependable dynamic support, aligning closely with horizontal support at $57.50. As long as price holds above this area, the broader channel structure remains intact.
The Fibonacci retracement drawn from the $48.64 → $58.89 rally highlights the next layers of defense if sellers gain traction:
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23.6% at $56.47
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38.2% at $54.97
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50% at $53.76
On the upside, bulls need a clean break and close above $58.90 to unlock a fresh leg toward $60.33 and $61.78, where historical resistance zones converge with the channel’s upper extension.
Silver (XAG/USD) – What Traders Should Watch Next
Silver’s next move hinges on momentum follow-through. The setup remains constructive, but a slip under $57.50 would signal fading buyer strength and expose the metal to deeper retracement levels.
Key factors to track include:
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Price reaction at $58.90
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RSI continuation above 60
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Holding above the 20-EMA
For now, silver continues to grind higher, with buyers keeping the door open for a breakout in the sessions ahead.
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