Alex Dudov
Silver (XAG) is making a comeback after days of choppy trading and downward moves. The metal has bounced cleanly from a key support area, suggesting the recent selloff might be done. Traders are now watching to see if this recovery can build into something more sustained.
Technical Outlook: Recovery Within Ascending Channel
Silver's been trading inside a rising channel since mid-October, and it just found solid footing near $47.0. That level lines up with both the channel's lower edge and an important demand zone that's been holding for weeks. According to trader TBones, who shared the latest chart, the bounce from this area looked decisive, with price pushing back toward $47.8 and reclaiming its short-term averages.
The momentum indicators are starting to cooperate too:
- RSI (14) has turned up from near 40, showing buyers are waking up
- MACD is crossing bullish, pointing to a possible shift in control
- Both suggest we could be in the early stages of an upward move
As long as Silver stays above that $47.0–$47.2 support zone, the technical picture looks constructive. The recent volatility may have actually cleared out weaker hands, setting the stage for a cleaner move higher if momentum continues.
Market Context: Why This Rebound Matters
Silver's recovery isn't happening in a vacuum. The broader commodities space is showing strength as the U.S. dollar eases off recent highs. There's also growing talk about stronger industrial demand heading into the end of the year, which tends to support silver more than gold given its dual role as both a precious and industrial metal. With technical and fundamental factors lining up, traders are starting to reassess their outlook for the near term.
Alex Dudov
