Silver Price Forecast: $75 Support Holds as Buyers Eye a Return Toward $82
Silver prices have stabilised somewhat after a pullback from their recent high point - they still look like they're in an overall uptrend...
Quick overview
- Silver prices have stabilized after a pullback but remain in an overall uptrend.
- Current trading is around $76.20, with key support at $75.10 and resistance at $78.50.
- Momentum indicators suggest a pause in the trend, allowing buyers to re-enter if support holds.
- The trade idea is to buy near $75.00 with a target of $82.00 and a stop loss under $72.30.
Silver prices have stabilised somewhat after a pullback from their recent high point – they still look like they’re in an overall uptrend even though the metal is currently consolidating. The metal has picked up some renewed interest from buyers as it tests out a key support zone and that is actually strengthening the case for a temporary pause rather than a full change in direction.
Silver (XAG/USD) Pulls Back, but it’s Still Looking Good
On the 4-hour chart, silver (XAG/USD) is right now trading around $76.20, easing back a bit after it failed to keep the momentum going above $82.00. The last few candles on the chart show smaller wicks and lower bodies – pretty clear sign that buyers are jumping in each time silver takes a tumble rather than letting the selling get out of hand.
It’s still stuck within a channel that has been guiding the upswing since December & that channel’s lower edge is actually sitting pretty close to the 38.2% Fibonacci level at $75.10 – reinforcing that as a good solid support zone.
[[XAG/USD-graph]]
Where do the Fibonacci Levels Say We Need to Watch Out
Below the current price, the 50% Fib at $72.35 is the next place where you’d probably expect the buyers to start stepping in and defending the trend. A move down to the 61.8% Fib at $69.60 would be a big deal & would start to make the medium term outlook look a bit more neutral.
On the flip side, resistance is going to come in at $78.50, followed closely by the old swing high at $82.60 – still the main barrier that silver needs to get past if it’s going to move back up towards the higher stuff.
Momentum is Starting to Slow Down, but Isn’t Converting to Sell Signals
The momentum indicators are giving us a pretty clear idea of what’s going on. The RSI has started to ease back to the mid 40s – that’s actually pretty normal for a trend that’s just pausing for breath. When the RSI resets like that, it usually gives the buyers a chance to get back in if the price holds support.
The series of higher lows is still intact – and that dashed trendline showing the rising support levels is still looking good.
Silver (XAG/USD) Outlook and Trade Idea
As long as silver stays above the lower channel boundary & the support zone between $75.00 & $75.10, the overall bias remains to the upside rather than a reversal.
Trade idea: Buy near $75.00, target $82.00. Stop loss under $72.30.
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