Since the end of October, the price of silver has been trading within a relatively tight consolidation range, fluctuating between $35 and $28.50. This range has now been tested multiple times on both ends, with the price touching the upper resistance and lower support levels twice, creating a well-defined horizontal structure in the market.
During the most recent decline, silver broke below the $28.50 support, sweeping the previous low and triggering a liquidity grab. This move likely cleared out stop-loss orders positioned beneath that level, providing the necessary fuel for a strong reversal. Following this sweep, the price reacted sharply and began climbing, indicating a shift in momentum and a potential change in market structure.
Currently, silver is accelerating toward the upper boundary of the range, once again approaching the $35 resistance level. Given the previous behavior and the speed of the current move, I anticipate that the price may attempt to sweep the highs above $35, targeting the liquidity resting just above that resistance zone. A rejection from this level is possible, especially considering the presence of a daily Fair Value Gap (FVG) that was left behind during the recent bullish push. If the price pulls back into this FVG and finds support there, it could provide a healthy retracement and set the stage for a more sustained move higher in the medium term.
Overall, the market seems to be positioning itself for a breakout attempt, but the reaction around the $35 level will be crucial in determining whether silver continues upward or enters another phase of consolidation.
If silver manages to break above the $35 resistance and establish support above that level, it could mark a significant shift in market sentiment and open the door for further upside. Holding above this key threshold would likely confirm the breakout from the long-standing consolidation range, signaling strong bullish intent. In such a scenario, we could see increased momentum as sidelined buyers step in, targeting higher levels in the weeks to come.
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During the most recent decline, silver broke below the $28.50 support, sweeping the previous low and triggering a liquidity grab. This move likely cleared out stop-loss orders positioned beneath that level, providing the necessary fuel for a strong reversal. Following this sweep, the price reacted sharply and began climbing, indicating a shift in momentum and a potential change in market structure.
Currently, silver is accelerating toward the upper boundary of the range, once again approaching the $35 resistance level. Given the previous behavior and the speed of the current move, I anticipate that the price may attempt to sweep the highs above $35, targeting the liquidity resting just above that resistance zone. A rejection from this level is possible, especially considering the presence of a daily Fair Value Gap (FVG) that was left behind during the recent bullish push. If the price pulls back into this FVG and finds support there, it could provide a healthy retracement and set the stage for a more sustained move higher in the medium term.
Overall, the market seems to be positioning itself for a breakout attempt, but the reaction around the $35 level will be crucial in determining whether silver continues upward or enters another phase of consolidation.
If silver manages to break above the $35 resistance and establish support above that level, it could mark a significant shift in market sentiment and open the door for further upside. Holding above this key threshold would likely confirm the breakout from the long-standing consolidation range, signaling strong bullish intent. In such a scenario, we could see increased momentum as sidelined buyers step in, targeting higher levels in the weeks to come.
Thanks for your support.
- Make sure to follow me so you don't miss out on the next analysis!
- Drop a like and leave a comment!
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Free signals
t.me/codeandcandle
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.