Peter Smith
⬤ Silver (XAG) is starting to move the way technical analysts expected, with the price showing some upward pressure near support zones. Silver is beginning to "play out as expected," and traders are waiting for stronger confirmation in the coming week to see if it can break out of its current range.
⬤ Looking at the daily chart, silver recently bounced off horizontal support around the $72 mark after pulling back from higher levels. The price has been squeezed between this lower support and a descending trendline above - a pattern that often comes before a bigger move. This setup is similar to what happened when silver tested the key 75-76 support zone, where it held above critical levels with potential to push toward higher resistance if buyers stayed active.
⬤ Technical patterns like this suggest that when prices get compressed inside tight ranges, they tend to make significant moves once key levels get tested. We saw something similar during the silver surge to $79.15, when breaking above resistance triggered fresh momentum across the precious metals market.
⬤ The next few days matter a lot for silver's price direction. How the market behaves around support and the overhead trendline will likely determine whether this consolidation breaks higher or continues sideways. A clean break above resistance could open the door to more upside, while failing to hold momentum might mean more range-bound trading. This setup shows just how important these technical levels are for shaping where silver heads next in the short term.
Peter Smith
