Peter Smith
Silver has been quietly building momentum as traders keep a close eye on key technical levels. With the precious metal holding steady near crucial support and showing signs of renewed bullish interest, market participants are positioning for what could be the next significant move higher.
Silver (XAG/USD) Price Holds at Key Support
Silver is showing impressive resilience as it trades around $38.50, right in line with its 50-hour moving average at $38.55. This level has become a critical battleground between buyers and sellers, and the way price reacts here could determine the next major move.
According to insights shared by @FBS_broker, the current setup looks promising for bulls. Silver has been consolidating in what appears to be a bullish flag pattern on the hourly chart - a formation that often leads to explosive moves higher when it finally breaks. The fact that price is holding above this key moving average support adds extra weight to the bullish case.
The technical picture gets even more interesting when we look at the MACD indicator, which has just crossed above the zero line. This is typically a strong signal that momentum is shifting in favor of the bulls and suggests that buying pressure is starting to build.
When you combine this MACD crossover with the flag pattern and the moving average support, it paints a pretty compelling picture for higher prices. The $39 level is now squarely in traders' crosshairs as the most logical target for any breakout move.
Silver (XAG/USD) Price Outlook – Path to $39 and Beyond
The setup is fairly straightforward from here. If silver can push through the $38.50-$38.55 resistance zone with conviction, we could see a quick run toward $39. That's where things get really interesting, as a break above $39 could open the door to even higher levels around $39.50-$40.
Of course, nothing is guaranteed in trading. If silver fails to hold above $38.20, we might see it slip back into a sideways grind rather than the explosive breakout bulls are hoping for. But right now, the technical stars seem to be aligning for higher prices, making the bullish scenario the more likely outcome in the near term.
Peter Smith
