Saad Ullah
⬤ Silver went through a brutal sell-off that pushed prices through several technical support zones before finally catching a bid. The metal has climbed back above the 4-hour Ichimoku cloud, which you can clearly see on the chart. This bounce suggests sellers have backed off temporarily, though price is still stuck below a key downward trendline acting as resistance.
⬤ XAG/USD is currently trading around $102 after dropping below earlier support levels. While the metal has recovered the 4-hour cloud, there's still meaningful resistance sitting just overhead. The black trendline on the chart marks the next major hurdle silver needs to clear if it wants to stabilize its short-term technical setup and confirm this recovery has legs.
⬤ The bigger picture adds some context to this recovery attempt. Gold is holding above its own 4-hour cloud for now, while the dollar index keeps showing bearish structure. Meanwhile, the SILJ to silver ratio just hit historically significant support, which typically means silver miners have a tough time outperforming the metal when there's broad selling pressure. These factors help explain why silver is trying to find its footing rather than continuing to drop.
⬤ This matters because silver is extremely sensitive to momentum shifts and risk sentiment changes. If price can close above the 4-hour cloud and break through nearby resistance, it could provide some breathing room and allow for steadier trading after the recent volatility. That said, even a successful bounce doesn't rule out another leg down in the near term, so watch how price handles resistance and whether support continues to hold.
Saad Ullah
