Saad Ullah
Silver has been on a tear this week, climbing steadily after finding solid support at the 50-day moving average. The precious metal currently sits at $38.326, up 0.13% on the day, but traders are starting to question whether this momentum can continue much longer.
XAG Price Bounces Strong from Key Support Level
The rally kicked off after silver formed a textbook inside range candle right at the 50-day EMA - a classic sign that buyers weren't ready to let prices fall any further. This technical setup gave traders the green light they'd been waiting for, and the market hasn't looked back since.
Monday's opening confirmed what many suspected: the bulls were back in control. Each trading session through Thursday delivered higher closes, giving long positions plenty of breathing room and keeping bears on the sidelines.
Doji Pattern Hints at Possible XAG Price Reversal
But Friday threw a wrench into the works. For the first time all week, silver failed to post a new high, instead closing with an inside range doji - the kind of indecisive candle that often signals trouble ahead for trending markets.
This could be the start of an evening doji star pattern, which would be bad news for anyone still holding long positions. The key word here is "could" - without follow-through from next week's trading, this might just be a brief pause before the next leg higher.
Right now, the technical picture still favors the bulls, but smart money is keeping one eye on the exit door.
Saad Ullah
