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Silver (XAG/USD) holds steady around $38.25 on Friday, following a 14-year high of $39.13 earlier this week. Supported by a bullish technical setup, the metal faces a pivotal moment—can it break through resistance, or will consolidation persist?
Technical Support Fuels Optimism
Silver remains anchored within an ascending channel on daily and weekly charts, bolstered by the 21-day EMA at $37.05 and the 50-day EMA at $35.82, offering a safety net for any dips. After a brief stall just below the $38.50-$39.00 resistance, momentum indicators are regaining strength. The Relative Strength Index (RSI) at 66 suggests renewed buying interest, while the Average Directional Index (ADX) hints at a strengthening trend, signaling a healthy pause in the uptrend.
Market Dynamics at Play
The metal’s stability reflects a balance between bullish structure and a cooling rally near multi-year highs. Traders are digesting Friday’s US housing data, with June Building Permits and Housing Starts showing improvement, adding to the positive backdrop. This consolidation phase, rather than exhaustion, keeps silver poised for a potential breakout.
Key Levels to Watch
Immediate support lies at $37.00, aligning with the 21-day EMA, with further backing at $35.50 and a strong demand zone near $34.50 if breached. On the upside, surpassing $39.13 could spark fresh buying, targeting the psychological $40.00 mark and beyond. The current neutral momentum leaves both bulls and bears in a standoff.
What’s Next for Silver?
Silver’s next move hinges on breaking $39.00 or holding $37.00. A breakout could ignite a rally, but a drop might trigger a pullback. Markets teeter—will silver soar, or will it retreat?
