Silver Price Forecast: XAG/USD Bulls Eye Major Resistance

Silver Technical Forecast: XAG/USD Weekly Trade Levels

Silver breakout extends more than 14.5% off monthly low- key technical resistance in view
XAG/USD risk for exhaustion / price inflection into monthly cross- broader outlook remains constructive
Resistance 35.24-36.01 (key), 37.50/83, 41.36– Support 32.53, 31.49, 29.86-30.09 (key)

Silver prices have surged more than 46% since the start of the year with the recent breakout in XAG/USD now approaching long-term technical resistance. The focus is on a reaction into this key zone in the weeks ahead with the broader multi-year advance vulnerable into the monthly cross. Battle lines drawn on the silver weekly technical chart.

Silver Price Chart – XAG/USD Weekly

Chart Prepared by Michael Boutros, Sr. Technical Strategist; XAG/USD on TradingView

Technical Outlook: Silver prices have rallied nearly 32% off the August low with the multi-month advance now approaching a major technical confluence at 35.24-36.01 – a region defined by the 61.8% retracement of the 2011 decline, the 2011 May weekly reversal close, and the 100% extension of the 2020 rally. Note that a last week’s Doji candle highlights the threat for potential exhaustion / price inflection into this region with the broader outlook vulnerable while below the upper parallels.

Initial weekly support now rests with the May high / 1.382% extension of the 2022 advance at 32.53 and is backed by the May high-close at 31.49. Broader bullish invalidation rests with the 2020 /2021 highs at 29.86-30.09- losses below this threshold would suggest a more significant high was registered.

A topside breach / close above 36.01 would threaten another accelerated advance with subsequent resistance objectives eyed at the 2012 high / 200% extension at 37.49/83 and the August 2011 high-week close at 41.36.

Bottom line: The silver rally is now approaching confluent uptrend resistance and while the broader outlook remains constructive, the immediate advance may be vulnerable into the close of the month. From a trading standpoint, a good zone to reduce portions of long-exposure / raise protective stops- losses should be limited o the median-line / 34.49 IF price is heading higher on this stretch with a close above 36.01 needed to fuel the next leg of the advance.

Active Weekly Technical Charts

--- Written by Michael Boutros, Sr Technical Strategist with FOREX.com

Follow Michael on X @MBForex

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.