Silver prices continued their upward momentum on Monday, reaching a fresh rally high of $32.39, signaling strong bullish sentiment. However, traders are now watching closely as the precious metal approaches a key technical resistance — the 50-day Moving Average (MA) near $32.51, which may dictate the next major move.
Technical Outlook: Silver’s Rally Nears Key Inflection Point
After bouncing from a support low of $28.32, silver (XAG/USD) staged a strong recovery, reclaiming the 200-day MA at $30.93 last week and clearing a crucial trendline. Friday’s close at $32.31 marked the completion of a 61.8% Fibonacci retracement, aligning with another long-term resistance trendline.
On Monday, silver remained within the upper half of Friday’s wide range and looks poised for a strong close — possibly above last week’s high. A daily close above $32.31 would confirm a bullish continuation and open the door toward higher targets.
Resistance Levels in Focus
- 50-Day MA at $32.51 – immediate resistance
- 20-Day MA at $32.66 – next upside challenge
- 78.6% Fibonacci retracement at $33.25 – potential target
The $32.51 zone is being tested for the first time since silver’s sharp drop on April 3, when it fell through key trendlines and moving averages. Reclaiming this level would mark a critical shift in sentiment and could reignite bullish momentum.
Momentum Watch: Consolidation Before Breakout?
While the medium-term trend remains bullish, technical indicators suggest silver may be temporarily overextended after a 14.4% rally in just a few sessions. A pullback or sideways consolidation may occur before the next leg higher.
That said, if bulls manage a sustained move above $32.51, the path toward $33.25 and beyond could quickly open up.
Conclusion: Silver Bulls Hold the Upper Hand
The current price action reflects strength, but all eyes are on the $32.50 resistance zone. A clear breakout could drive silver toward new multi-month highs. Traders should monitor daily closes and volume around these key technical levels to confirm the next direction.
Stay Updated with Daily Forex Pakistan.