FX.co ★ Skull999 | XAG/USD, SILVER

Silver Daily Forecast Silver (XAG/USD) on the daily chart indicates that the market is still in a larger bullish pattern but has reached a well-established corrective stage following a long run higher. The price moved up from the July lows around the 41.50 area towards the top around 54.20 and formed a strong bullish leg with a series of higher highs and higher lows. This impulsive stage was underpinned by strong buying momentum and alignment higher than the 20-day and 50-day moving averages. However, around 54.00, silver began to encounter strong profit-taking, which has led to a considerable bearish correction that is now testing important levels. This correction has led to a bearish trend which is now at a critical range defined by profit-taking at 54.00. With Fibonacci retracements drawn from 41.48 to 54.22, we can identify important levels where price may find support, allowing us to forecast range-bound activity. Silver is currently trading just below the 50% retracement level at 48.58, which is also closely aligned with the 50-day moving average, and this adds technical confluence and makes this level a key short-term support zone. Below 48.50, then the next level of support is just below 47.90, but further retracement could take it down to the 61.8% Fibonacci level around 46.03, which also happens to coincide with the old structure of price accumulation in late September. In case the price drops below the 46.00 area, it would indicate a more extended trend fatigue, potentially sending the pair to the 45.00 and 43.30 levels, where the 100-day moving average lies. Resistance-wise, the first short-term resistance lies at the 38.2% level of 49.67. A close above this level on a daily basis would show an effort by buyers to regain control in the short term, paving the way to the next resistance around 50.58, where the 20-day moving average meets. Beyond that, the key resistance is around the 23.6% retracement zone at 51.49, and higher, a retest of the high around 54.00 could enter consideration if the bullish momentum gains speed again. Nonetheless, currently, the pattern still keeps its corrective nature, with the market oscillating between 49.70 resistance and support at 47.90, indicating range-bound price action as investors wait for a strong breakout. From the point of trend, silver is still in an overall bullish structure since the medium-term moving averages still slope upwards, indicating that the long-term momentum is still intact. In the short term, the recent price action shows losing bullish momentum with candles turning bearish and longer wicks suggesting the market is indecisive and trying to consolidate after the significant sell-off. The 20-day red moving average looks like it is trying to consolidate before taking another directional move. As long as price remains above 48.00–47.80 the buyers may come back and the market may bounce to 50.50 and above. Corrections are confirmed by the MACD (12, 26, 9) as the histogram is losing bullish momentum which correlates to the declining bullish, and the MACD line is moving to the signal line from above suggesting near term consolidation. Even so, the overall MACD position remains positive indicating overall bullish sentiment. The RSI (14) is positioned at neutral 50.08 indicating the market is no longer overbought as it left the overbought region suggesting room for the market to either continue the declining correction or to run higher as momentum builds. The Stochastic Oscillator has fallen to the lower area at around 17, indicating an oversold situation and raising the likelihood of a short-term pullback from here at current price levels. Technically, the correction phase in silver is still healthy within the overall bullish trend, provided the price remains above the 47.80–47.00 area. If this level holds, it can also act as a possible support for a fresh rally, with 49.70 and 51.50 as initial targets. Alternatively, a fall below the 46.00 level of support would refocus attention to 45.00 and 43.30, indicating a deeper retracement phase. The reaction of the price to the 50% Fibonacci line is crucial in determining if silver continues its uptrend or its downtrend to deeper levels of retracement. Overall the market structure suggests the trend is bullish but correcting. Attention is on the 48.00 level to see if it can attract enough buying interest to continue the upward movement.