Silver’s Roadmap: Support at 37, Eyes on 451. What happened last week
As I mentioned in previous analyses, Silver is more bullish than Gold. Last week confirmed this view once again: the dip from 37 was quickly absorbed by buyers, showing strong demand. On the weekly chart (left), the reversal from the lows printed a clear bullish engulfing candle, while on the daily chart (right), the bounce shaped a classic three white soldiers pattern.
2. Key resistance and current challenge
Friday’s advance, however, stalled exactly at the resistance zone around 39, an area defined by the high from previous months. This makes 39 the immediate hurdle for bulls. Without a clean breakout above this zone, the risk of another short-term pullback remains.
3. Bigger picture outlook
Looking further ahead, many traders might see a move toward 45 as “stretched,” considering it implies a rally of nearly 6000 pips from here. But in percentage terms, that’s only about 15%, which is well within Silver’s historical volatility. In fact, such moves are not unusual for Silver market when momentum builds.
4. Trading plan
With this in mind, as long as the 37 level holds as support, the strategy remains to buy dips into weakness. A decisive break above 39 would provide confirmation for continuation, opening the door toward the 45 target area.
5. Final note
Silver continues to show relative strength compared to Gold. The technical picture is bullish, the levels are well-defined, and the price action is clean. Now the market simply needs confirmation above resistance.
Disclosure: I am part of TradeNation's Influencer program and receive a monthly fee for using their TradingView charts in my analyses and educational articles.
