Peter Smith
⬤ Silver (XAG/USD) is holding firm above a well-defined rising support trendline after a sharp drop from recent highs. Trading around $77.95, the precious metal has stabilized in the $77-78 zone following a corrective move from above $82. The 4-hour chart shows price action trending higher since mid-December, with each pullback finding support near the ascending trendline that's been guiding the rally.
⬤ This rising support line has proven critical over the past several weeks. Every major dip during this period has seen silver bounce off or near this level, reinforcing its importance as structural support. Even after the latest sharp decline from the $82 area, XAG/USD found buyers close to the trendline and pushed higher again.
⬤ The recent pullback followed an extended December rally where silver climbed steadily, printing higher highs and higher lows throughout. While the correction was aggressive, the recovery kept price aligned with the prevailing uptrend channel. The chart shows both dashed and solid ascending lines marking the broader upward trajectory, with trendline integrity remaining key to maintaining bullish momentum.
⬤ Silver's behavior at this support level matters because the metal plays a dual role in both precious metals and industrial commodities markets. Holding above the rising trendline reinforces bullish sentiment and keeps focus on trend continuation rather than reversal risk. Traders watching silver may interpret this technical respect as a sign that demand remains solid even during corrections, shaping expectations for the metal's next move.
Peter Smith
