Saad Ullah
Silver (XAG) is showing persistent weakness after completing its descending triangle target, confirming bearish momentum remains in control. While prices have stabilized around $47.0, any bounce toward $47.4–$48.0 could face strong resistance — a zone now watched as a potential reentry point for short sellers.
Triangle Pattern Fulfilled, But Bears Still in Control
Trader FrancisWong.cro recently noted that Silver has hit the projected downside target of a descending triangle formation on the 4-hour chart. After peaking near $54 in early October, Silver experienced two consecutive drops of roughly 4.8% each.
Current price action shows Silver hovering around $47.01 after recovering from the $46.8 low. The 20-period EMA at $47.69 continues trending downward, reinforcing the bearish outlook, while volume patterns suggest sellers remain dominant despite short-term bounce attempts.
Key Resistance Zone Could Define Next Move
The technical structure points to $47.4–$48.0 as critical resistance — a zone that previously provided strong support before breaking down. If Silver fails to reclaim this level, the downtrend could extend toward $45.5, with $44.0 as a longer-term target. Conversely, a close above $48.0 would signal potential stabilization, though it would need volume confirmation and higher lows on shorter timeframes.
Broader Market Forces Working Against Recovery
Beyond technicals, Silver faces headwinds from a strong U.S. dollar and rising Treasury yields, which have dampened investor demand for precious metals as traders seek safer returns. This has reduced speculative interest across commodities, making sustained recovery difficult.
What to Watch Going Forward
Silver's technical setup remains bearish despite completing the triangle target. Any move toward $47.4–$48.0 should be viewed cautiously as a potential selling opportunity unless prices decisively reclaim that zone with volume support. For now, the path of least resistance points downward, and only a sustained break above $48.0 would suggest a broader reversal is underway.
Saad Ullah
