Monday , 27 November 2023
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Silver Price Forecast: XAG/USD Bullish Continuation Remains Constructive

Silver (XAGUSD) 4-Hour Chart
Silver (XAGUSD) 4-Hour Chart


  • Silver bulls have not capitulated, upside potential remains above crucial zone of support
  • Upside risks remain in play as US interest rate expectations decline alongside the dollar
  • The analysis in this article makes use of chart patterns and key support and resistance levels. For more information visit our comprehensive education library


Silver has been on a massive bull run since the SVB saga which has been characterized by very shallow pullbacks – further reinforcing the strength of the trend. However, the most recent pullback which coincided with relative USD strength happens to be the deepest, warranting a closer look.

Silver, like gold, has emerged as one of the standout beneficiaries of a dollar selloff- motivated by rapidly declining interest rate expectations in the latter half of the year. The non-interest-bearing commodities have become relatively more attractive in the shifting interest rate environment and stand to gain from further declines in the value of the greenback.

For silver bulls, the recent pullback could offer more attractive levels for a potential bullish continuation with the sizeable rejection of lower prices evidenced via the extended lower wick on the daily chart. However, such an observation requires a daily close in line with what is being observed intra-day. The possibility of a bullish hammer formation – a typically bullish reversal pattern – suggest that the bulls may not be done yet and the fact that price action no longer trades in overbought territory hints at another push to towards the recent high.

Silver (XAG/USD) Daily Chart

A bullish continuation remains constructive above support of 24.65/25 with immediate resistance at the 61.8% Fibonacci retracement of the major 2021 to 2022 move. Thereafter, a retest of the swing high at 26.10 comes into focus.

The 4-hour chart helps to highlight the extend of the downside rejection which emerged after prices treaded just below the zone of support around 25.


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