Saad Ullah
⬤ Silver's in a sensitive technical spot right now. On the daily chart, XAG printed a long-range spinning top candle that closed right on the 50-day EMA—basically screaming indecision. Buyers showed up after some intraday selling, but the session ended flat. The candle structure shows demand coming in, just not enough punch to flip things bullish again.
⬤ Here's what matters: silver's now trading below the 21-day EMA for the first time in almost three months. That's a real shift in short-term trend behavior. What used to be support is now resistance, capping rally attempts. Meanwhile, the MACD crossed below its signal line and keeps expanding lower, meaning bearish momentum's still active—not stabilizing. This looks more like a correction phase than any kind of reversal.
⬤ The current bounce feels more like a reflex move than real accumulation. Failure to reclaim those short-term averages, plus that expanding downside momentum, raises the risk silver forms a bearish continuation pattern—think bear flag or pennant. There's overhead supply visible on the chart, making life tough for bulls trying to regain control.
⬤ Why this setup matters: silver tends to move decisively when momentum shifts at major inflection points like this. Firm U.S. Treasury yields and a strong dollar keep applying pressure on non-yielding assets, adding more technical headwinds. With XAG/USD trading below key moving averages and downside momentum still building, near-term price action will determine whether silver stabilizes here or extends this corrective phase further.
Saad Ullah
