XAG/USD (Silver) Monthly Analysis – Major Resistance Test Incomi🔍 XAG/USD (Silver) Monthly Analysis – Major Resistance Test Incoming 💥🪙
📊 Overview:
This monthly chart of XAG/USD (Silver vs. US Dollar) reveals a critical technical juncture, where price action is testing a multi-year resistance-turned-support zone around $36.27. The chart is structured with major zones of support and resistance, and it includes a potential bullish extension followed by a bearish correction scenario.
📌 Key Technical Levels:
🟧 Support Zone: $22.50 – $24.00
🟨 Resistance-Turned-Support Zone: $34.00 – $36.50
🟪 Major Resistance: $43.60 – $48.80
🔼 Bullish Scenario (Preferred Path):
Current Price: ~$36.27 is at the upper edge of a crucial S/R flip zone.
📈 A breakout above this zone could propel silver toward the next resistance target at $43.60, with a potential full extension to $48.80.
✨ Momentum and historical breakout behavior from this region suggest strong buying interest if breached convincingly.
🔽 Bearish Scenario (Rejection Path):
🔄 If silver faces rejection at the $36.27 zone, it may retrace towards:
🟥 $28.31 minor support (intermediate target),
🔻 followed by a deeper correction to the $22.50–$24.00 support zone.
🔁 This would complete a classic retest of broken support, allowing accumulation before any further long-term rally.
🧠 Strategic Notes:
⚠️ Macro-driven: Silver is highly sensitive to inflation, Fed policy, and industrial demand.
📅 Long-term chart suggests cyclical behavior, with consolidation phases followed by aggressive trends.
📌 Traders should monitor weekly closes around $36.27 to confirm breakout or rejection.
✅ Conclusion:
Silver is at a make-or-break zone 🧨. A breakout may lead to a multi-year high, but failure here opens the door for a healthy pullback. The next few candles will be decisive for long-term positioning.
📉 Watch for rejection wicks at resistance
📈 Monitor volume on breakout attempts
📊 Plan for both outcomes: breakout or retest
