Usman Salis
Silver has captured traders' attention after breaking out of a months-long consolidation pattern, signaling potential for further gains. The precious metal's ability to maintain ground above critical technical levels suggests bullish momentum may be building.
Silver (XAG) Price Holds Above 40-Day EMA Support
Silver is showing strength after a technical breakout that could define its path forward. December Silver futures are trading at $39.09, with the 40-day EMA providing solid support at $38.80. This level has become a key reference point for traders looking to enter on any weakness.
Market analyst @arc1471 noted that Silver's symmetrical triangle has broken to the upside, reinforcing the bullish outlook. This breakout represents a significant shift after months of sideways trading, giving bulls renewed confidence.
The symmetrical triangle that contained Silver's price action since July has finally resolved upward. These patterns typically precede strong directional moves, and Silver's break above the upper trendline suggests buyers are taking control.
The metal has stabilized just above its breakout level, which is encouraging for those betting on higher prices. As long as Silver holds above $39, the technical picture remains positive, with $40 serving as the next major hurdle.
What's Next for Silver (XAG) Price?
If Silver maintains support above the 40-day EMA at $38.80, prices could push toward the $40-$41.50 resistance zone tested earlier this summer. Breaking through this area would open the door for new highs as we head into the fourth quarter.
Should the breakout fail and Silver drops below the EMA, a retreat to $38 support is possible. However, with safe-haven demand intact and expectations for Fed rate cuts supporting precious metals, the overall outlook remains positive.
Usman Salis
