Silver (XAG/USD) remains at a critical technical juncture as prices flirt with key support near $37.50. Monday’s session saw the metal dip to a 7-day low of $37.91, reflecting ongoing downside pressure—but without strong bearish momentum, as evidenced by the tight trading range between $37.91 and $38.34. A potential doji candlestick may signal indecision or a pause before the next move.
🔹 20-Day MA and Trendline in Focus
The 20-day moving average (currently near $37.73) aligns closely with the rising trendline from the April swing low, forming a critical support confluence. As long as silver holds above this level, the broader bullish structure remains intact.
Beneath that, the price zone between $37.54 and $37.32 (including a prior swing low and resistance-turned-support) may provide a secondary floor if the 20-day MA fails to hold.
🔹 Reversal Signal If Price Clears $38.34
A decisive move above $38.34—the high of Monday’s session—would confirm a short-term bullish reversal. This could position silver to retest the recent high at $39.20, followed by the top of its long-term ascending channel near $39.53.
🔹 Breakdown Risks Increase Below $37.54
If silver breaks below $37.54 with conviction, the ongoing bullish trend may give way to a deeper correction. The next downside target would be the 50-day moving average near $36.22, while a full channel breakdown could push prices toward the February swing low.
🔹 Bullish Scenario: Break Above $39.53 Opens Path to $40.95
If silver manages a strong breakout above $39.53, the bullish momentum could accelerate toward the $40.20 and $40.95 targets, marking a potential breakout from the long-standing rising channel.
Summary:
Silver is at a decision point—either defend key trend support and aim for new highs, or confirm a bearish reversal below $37.54. Traders should watch for a breakout above $38.34 or a breakdown under $37.50 to signal the next move.
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