Silver Price Holds Key Support at 20-Day MA, But Reversal Signs Emerge

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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