Peter Smith
Silver's impressive run continues to capture trader attention as the precious metal hovers tantalizingly close to the $40 mark. With industrial demand surging and inflation concerns mounting, investors are positioning themselves for what could be silver's next major breakout. The question isn't whether silver will move—it's which direction it'll go from here.
Silver (XAG) Technical Outlook – $37.6 Support Remains Key
Veteran trader @StoicSilverBear points out something interesting: while silver's strength is undeniable, that rejection just below $40 might tell us the market's not quite ready yet. His take? As long as we stay above $37.6—which lines up nicely with the 50-day moving average—the bulls are still in control.
If silver does punch through $40 cleanly, expects momentum to carry it toward $50.12, where it peaked back in 2011. But if support gives way, any pullback could actually be a gift for traders looking to get in at better prices.
That $39.72 monthly close is genuinely impressive—the fourth-highest ever. Sure, it's frustrating not to see $40 broken, but this kind of consolidation often sets the stage for bigger moves ahead.
The Ichimoku cloud is still painting a bullish picture, and volume patterns suggest serious money is still accumulating. Keep $37.6 on your radar—that's the line in the sand. Hold above it, and we're looking at potential runs to $45 or even that $50.12 target.
Macro Factors Driving Silver (XAG) Price
The technical story is only half the picture. Silver's getting a boost from multiple angles: inflation fears have investors seeking alternatives, central banks loading up on precious metals, and industrial demand from solar panels and green tech keeps growing.
A decisive break above $40 could unleash serious buying pressure and set silver up for a genuine run at $50. But if sellers show up again, expect a retreat back to the $37.6–$35 zone where bargain hunters typically emerge.
Peter Smith
