Saad Ullah
⬤Silver's daily chart is flashing indecision. XAG/USD printed a doji candle while holding just above the 50-day exponential moving average near $81.6, a level buyers are actively defending. The doji reflects classic market hesitation: neither bulls nor bears have taken control following the recent pullback, leaving silver's short-term direction unresolved.
⬤The broader structure is harder to ignore. Silver appears to be building a bearish pennant, a consolidation pattern that typically follows a sharp leg lower. Price is compressing inside a narrowing triangle just beneath the 21 EMA at $84.6, while Fibonacci retracement levels at 0.382, 0.5, and 0.618 mark clear resistance zones overhead. The metal has already pulled back from highs near $110, and this tightening formation suggests the market is pausing before its next move rather than staging a genuine recovery.
⬤Momentum is leaning bearish. The MACD has crossed below its signal line, a widely-watched signal of fading bullish momentum. Lower timeframe charts have shown persistent selling pressure throughout the week, reinforcing the case that XAG/USD remains under short-term downward influence. As analysts have noted, reclaiming the 21 and 50 EMAs is critical for any meaningful bullish shift, and that reclaim has yet to materialize.
⬤Silver is effectively in a wait-and-see mode. The pennant structure is tightening, the MACD is negative, and price remains sandwiched between two key moving averages. A clean breakout above resistance or a confirmed breakdown below the pennant's lower boundary will be the deciding moment. Until then, the kind of directional surge that previously pushed silver above $90 toward targets at $92.20 and $96.60 looks unlikely without a meaningful shift in momentum.
Saad Ullah
