Silver (XAG/USD) surged to a new trend high at the start of the week but failed to hold onto its gains, signaling a potential short-term pullback as resistance levels came into play. While the broader uptrend remains intact, technical signals point to a temporary pause in bullish momentum.
🔹 Silver Fails to Hold $39.00 – Bearish Reversal in Play
Silver briefly rallied to a new trend high of $39.13 on Monday but faced sharp resistance, triggering a swift intraday selloff. Prices dropped back toward $38.11, near the day’s lows, indicating growing bearish pressure.
At the time of writing, silver remains under pressure and is set to close with a bearish shooting star candlestick pattern. A confirmed drop below Monday’s low could validate this bearish reversal. However, due to the wide trading range, consolidation within Monday’s range is also possible before the next decisive move.
🕯️ Candlestick & Price Structure: Short-Term Reversal Brewing
- Shooting Star Pattern: The reversal signal becomes valid on a close below $38.11.
- Bearish Pressure: The rejection near the midpoint of the rising trend channel suggests exhaustion.
- Key Support Ahead: A potential pullback could test the former breakout zone around $37.32.
📊 Technical Context: Breakout Pauses After Strong Rally
Silver’s breakout last Friday from a four-week consolidation base sent a strong bullish signal. The price surged past layered resistance between $38.46–$38.61, closing the week near the highs—a sign of buyer dominance.
Monday’s session, however, ran into resistance at the dashed midpoint of the rising channel, leading to a sharp rejection and profit-taking.
📈 Trend Analysis: Bullish Structure Intact Despite Pullback
Despite Monday’s selloff, the larger uptrend remains strong. The move to $39+ followed a successful retest of the 20-Day Moving Average (MA) and support along the lower ascending trendline. This confluence provided the launchpad for last week’s breakout.
- Support Zone to Watch: $37.32 (prior high) and $36.85 (channel support)
- Resistance to Reclaim: $38.61 and $39.13
Once the pullback completes, technical structure suggests silver could resume its upward trajectory toward the upper boundary of the rising channel.
🔍 Outlook: Bullish Trend Pauses, But Not Broken
Silver’s failure to sustain its breakout above $39.00 signals a temporary exhaustion, not a reversal of the broader bullish trend. A pullback toward the $37.00 zone would be healthy within the context of the ongoing uptrend.
Traders should watch for:
- A bounce from the $37.30–$37.50 support zone
- Bullish confirmation above $38.60
- Downside risk below $36.85 if sentiment weakens
📊 Stay updated with www.dailyforex.pk for live silver price forecasts, market analysis, and real-time trading signals.