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Can Silver reclaim $60 after its latest rebound?

Silver traded near $57.76 on Friday and remained on course for a weekly gain of around 3.4%. The metal retained that weekly advance despite Thursday’s 3.4% decline, but the recovery remains tentative.

The immediate question is whether buyers can reclaim $60, the top of its 100-EMA bollinger band®.

A sustained move above this level would improve the short-term structure, allowing Silver to catch a breather before either:

  • Getting rejected back to 55.59-57.21.
  • Or rising towards 61.50 to 64.
  • Potentially reaching $68 or $71, previous zones of consolidation or resistance.

Since mid-May, silver has repeatedly struggled beneath its four-hour 100 EMA band, shown by the blue area on the chart. The band is set at half a standard deviation and has acted as dynamic resistance during the decline.

XAGUSD

Buyers may now be preparing to challenge it. Silver has bounced from the area surrounding its June low, while stochastic RSI momentum appears stretched following the recent sell-off.

However, being oversold does not mean the decline has ended.

Silver still needs to close above the EMA band and reclaim $60 before the bounce becomes technically more convincing.

That would open the way towards the $61.50 to $64.00 resistance zone. The upper end of this range is the more important test because a break and hold above $64 would provide stronger evidence that buyers have regained control.

It would also complete the neckline break required for the potential double-bottom pattern. This would bring $71 into view as the approximate measured-move target, with $68 acting as another resistance.

The setup would weaken if silver falls back through its June low. Until the EMA band and $60 are reclaimed, this remains a possible reversal rather than a confirmed bullish breakout.

Author

Zorrays Junaid

Zorrays Junaid

Alchemy Markets

Zorrays Junaid has extensive combined experience in the financial markets as a portfolio manager and trading coach. More recently, he is an Analyst with Alchemy Markets, and has contributed to DailyFX and Elliott Wave Forecast in the past.

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