Silver (XAG/USD) surged on Monday, breaking out of its recent consolidation range and reinforcing bullish sentiment. The metal spiked to $34.74 after clearing key resistance at $34.59, signaling a strong upside continuation.
At the time of writing, silver trades near daily highs, with bulls firmly in control. A daily close above $34.59 would confirm the breakout and potentially set the stage for a push toward the October high of $34.87 — and beyond.
Key Technical Highlights:
- Silver broke out of an 8-day consolidation pattern with a strong green candle, clearing resistance at $34.59.
- Support at $32.96 held firmly, marked by a successful retest of the 20-day moving average.
- A daily close above $34.59 confirms bullish continuation and targets the next resistance near $37.05.
- The current move builds on an earlier rally from the April swing low at $28.32, which triggered an 18.9% surge to $33.68 in just 11 days.
- Silver’s rally continues along a rising ABCD pattern, with a confirmed higher swing high and bullish trajectory.
Bullish Continuation Backed by Market Structure
The recent move follows a bullish breakout from a smaller consolidation pattern formed atop a larger descending triangle. That pattern’s breakout, triggered on May 21, now finds support along the 50-day moving average — previously a key resistance level.
This shift in market structure, where resistance becomes support, supports the argument for continued upside. Technical momentum, rising demand, and bullish chart patterns all point toward a potential rally to the $37.05 level — a projected target based on the ABCD pattern from the April low.
Outlook
With momentum accelerating and key resistance levels being cleared, silver is well-positioned for further gains. If bullish conditions persist and the metal closes above $34.59 consistently, traders may look for price action to approach — and potentially break — the $37 mark in the coming sessions.
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