Silver Support and Resistance – XAG/USD Analysis Today

Continuing its recovery, silver prices broke through resistance near $60.60/oz and $61.20/oz, then tested the $61.40 resistance. Facing pressure, price retreated to the $60.50 support level. Demand remains present during pullbacks, keeping alive the possibility of testing the $60.80–$61.00 resistance zone. A loss of support would trigger a decline toward the $60.40–$60.20 range. Breaking the latter level would lead to a drop toward $60.00–$59.80, where the metal might attract renewed buying interest. A break above the $61.40 resistance would drive the price up toward $61.80/oz.

Another sell-off in silver—specifically during a rebound toward resistance in the $60.50–$60.60 per ounce range—pushed the price down to support near the $58.60–$58.50 level. Buyers stepped in at that point, and bulls are currently retesting the aforementioned resistance. They have yet to break through, however, so a decline from current levels toward support in the $60.00–$59.70 range is possible. A more significant drop is unlikely at this stage, though prices may consolidate within the range defined by this support and the current resistance. A breakout above resistance would pave the way for a rise toward the $61.00 per ounce level.

Remaining under pressure, silver broke below support near the psychological level of $60.00 per ounce; the price continued to fall, testing the $59.00 level. Demand at this level drove a recovery to the 60.60 mark, but bears remain in control; consequently, the rally was used as an opportunity to sell, pushing the price back down to the current support level near $59.00. A break below this level would lead to a decline toward the 58.50–58.20 range. Holding these levels could trigger a rebound toward $59.60–60.00 per ounce, potentially leading the metal into a consolidation phase within that range. The outlook for the metal remains bearish.

The rebound of silver quotations from the support in the area of ​​60.40 dollars per ounce was again limited by the resistance of 61.80, sales of which returned the quotations of the metal to the above-mentioned support. Consolidation of the metal in the range continues, therefore, from the current levels, it is possible to maintain demand and bounce quotations back to the resistance of 61.20-61.40 at least. Breaking the last level will lead to growth in the direction of 61.60-61.80, where sales are possible. The loss of current support will entail a decline in the direction of $60.20-$60.00 per ounce. Breaking through this level will increase the pressure and may signal the end of the consolidation and the resumption of the downward trend.