Silver Faces Technical Resistance After Steep Run-Up
Tuesday’s modest decline comes after an impressive run that saw silver climb to levels not seen since 2011. However, price action is showing signs of exhaustion, with traders watching closely for confirmation of a closing price reversal top—a pattern that often precedes a short-term correction. If confirmed, immediate downside targets include the 50% retracement level at $38.90 and major trend support at the 50-day moving average of $37.90.
This pullback zone is critical for bulls. A decisive break below $37.90 could open the door to deeper weakness, while any successful defense of that area will likely invite renewed long interest. The uptrend remains intact unless $37.90 is breached on a closing basis.
Momentum Still Favors the Bulls—But With Caution
Despite early signs of a correction, silver’s broader technical picture remains bullish. A breakout above $40.85 would invalidate the reversal setup and signal a continuation toward the next upside target at $44.22. Traders should expect volatility as the metal tests both support and resistance in the coming sessions.
The metal’s recent strength has been supported by a combination of Fed rate cut bets, safe-haven inflows, and industrial demand resilience. However, headwinds from a stronger U.S. dollar and rising Treasury yields—factors also impacting gold—could weigh on near-term sentiment.
Short-Term Outlook: Pullback Risk Grows, but Trend Intact