Peter Smith
Silver (XAG) is holding firm above $47.40 in early October trading, with bullish technical signals suggesting that the metal could soon challenge the $50 psychological level. The precious metal has shown impressive strength over recent sessions, building momentum that has traders watching key resistance zones closely.
Strong Overnight Action
Overnight trading reinforced silver's positive tone, with prices consolidating around $47.48 after last week's impressive three-day rally. Analyst TBones highlighted that silver and mining stocks gained on Thursday, Friday, and Monday, raising speculation that this upward rhythm could extend further into the new week.
The synchronization between the metal and mining equities has added confidence to the bullish narrative.
Chart Analysis: Key Levels in Play
The one-hour chart reveals several important developments worth noting. Support from moving averages remains solid, with the 50-period SMA sitting near $46.97 and the 70-period SMA close at $46.95, both providing a strong base. The 210-period SMA, further below at $45.11, continues to trend upward, reinforcing the longer-term bullish structure.
Momentum remains intact, as the RSI at 58.7 stays in bullish territory without being overbought, leaving room for further upside moves. The MACD is attempting a bullish shift, aligning with the ongoing recovery. Price action is now testing resistance between $47.80–48.00, which is the next barrier before the critical $50.00 mark.
Why Silver Is Rallying
Several drivers support the current bullish trend. Safe-haven demand has kept silver attractive alongside gold amid global macroeconomic uncertainty. Industrial demand from green energy and electronics continues to lift the metal's medium-term outlook. The correlation with mining equities has also reinforced the bullish sentiment across the sector.
All Eyes on $50
The $50 level remains the ultimate near-term target. A sustained move above $48.00 could ignite momentum toward this psychological threshold, which traders view as a gateway to further gains. For now, holding above $47.00 is critical for maintaining bullish pressure, while dips toward $46.50 are likely to be quickly absorbed by buyers looking to enter on pullbacks.
Peter Smith
