April 22, 2025 – DailyForex.pk
Silver prices remained supported near the 20-Day Moving Average (MA) on Monday, maintaining a short-term uptrend but signaling possible weakness ahead. Despite an intraday rally, a weak closing position and bearish candlestick formation raise correction risks in the coming sessions.
📉 Silver’s Technical Overview: Support Tested, Momentum Slows
- Intraday Low: $32.43
- 20-Day MA: $32.45
- Intraday High: $33.06
- Recent Breakout Level: $32.94
Silver initially triggered a bullish breakout above last Friday’s high of $32.94, reaching an intraday peak at $33.06. However, prices slipped back to the lower half of the day’s range by the close, showing signs of waning momentum.
Despite the retreat, silver held above the 20-Day MA, which continues to act as a key short-term support level. A breakdown below this level, however, could signal a deeper pullback.
📈 Previous Breakout: Resistance Turns into Support
Last week, silver confirmed a bullish breakout on Wednesday with a daily close above a confluence resistance zone formed by:
- A long-term uptrend line
- The 50-Day MA
- The 20-Day MA
- Resistance range: $32.49 to $32.53
This area has now become a support zone, with prices bouncing off it in recent sessions. Monday marks the first session where silver traded entirely above the 20-Day MA, further strengthening this zone’s credibility.
While silver is also holding above the 50-Day MA, confirmation is still tentative, as price action remains volatile.
⚠️ Caution Ahead: Shooting Star Pattern at Key Support
Despite the sustained support, there are technical warning signs:
- Silver has rallied 17% in just 7 sessions, a sharp move of nearly $4.80
- Monday’s candlestick resembles a bearish shooting star, often seen near trend tops
- A decisive close below $32.43 would invalidate the 20-Day MA as support and potentially trigger a deeper correction
If that support fails, silver could retrace further, potentially testing lower support zones near the 50-Day MA or earlier consolidation levels.
📌 Conclusion: Uptrend Intact, But Bulls Must Defend $32.43
Silver remains technically bullish as long as it holds above the 20-Day MA. However, reversal patterns and overextended rally signals suggest a short-term pullback could be on the horizon.
Traders should closely monitor:
- $32.43 as immediate support
- Breakouts above $33.06 to confirm continued upside
- Behavior around the 50-Day MA for broader trend strength
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