Silver continues to show strong bullish momentum following a confirmed breakout above key resistance levels, supported by robust technical patterns and growing investor interest.
Key Highlights:
- Silver confirms bull wedge breakout and tests support at $36.41
- A move above $37.23 could trigger a new rally toward the $38.50 zone
- Weekly close marks highest since 2011, reinforcing long-term bullish outlook
Technical Overview: Bull Wedge Breakout Confirmed
Silver (XAGUSD) kicked off the week by retesting key support around the upper boundary of a previously broken bull wedge pattern. Monday’s pullback found support at both the top of the wedge and the 20-Day Moving Average (now at $36.41), confirming the breakout that began last Thursday. That breakout also reclaimed the 20-Day MA and surpassed a prior swing high at $36.84—both important technical milestones.
The day’s broad trading range, which encompassed the previous two sessions, signals heightened volatility, often a precursor to a directional move.
A sustained rally above Monday’s high of $37.23 would offer the next bullish trigger, setting the stage for a test of the key resistance zone between $38.46 and $38.61. This target area aligns with the top of a long-term rising channel and the midline of a shorter-term channel—both offering valuable insight into future price behavior.
Weekly Chart: Multi-Year Breakout Confirms Bullish Trend
Last week’s close was the highest for silver since September 2011, marking a significant bullish development. Monday’s move above the previous weekly high of $37.08 adds further confirmation of this breakout.
The weekly chart also displayed a bullish reversal pattern, confirmed by a strong close near the top of the range. This behavior reflects increasing demand and renewed bullish conviction on the higher time frame.
Taken together—the breakout from the wedge, support at the 20-Day MA, and confirmation via a weekly chart—suggest silver may be entering the next phase of its broader uptrend. A decisive break above $37.32 would validate this move, with the next upside target range seen between $38.46 and $38.61.
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