- Silver has met resistance at a trendline and is pausing after a bull run.
- It would need to make a decisive break above the trendline to continue its uptrend.
Silver (XAG/USD) has reached a key trendline in the $30s and stalled. It has posted several Doji-like candlestick patterns over the last few days. Dojis are days where the price closes very near to the level where it opened. This is a sign of market indecision.
Silver Daily Chart
Silver has been in an uptrend ever since the early August lows, even though it also corrected back during the second half of the month. As it is a principle of technical analysis that “the trend is your friend” the uptrend in Silver is more likely than not to extend. Therefore, it could go higher. A decisive break above the trendline would confirm a breakout and a follow-through to $32.94, the 0.618 Fibonacci ratio of C leg extended higher.
A decisive break would be one accompanied by a long green candlestick that broke clearly above the level and closed near its high, or three candlesticks in a row that broke above the level.
Although price action has formed several Doji Japanese candles over recent days it has not formed a reversal candlestick pattern such as a Shooting Star, Bearish Engulfing or Hanging Man, for example. As such it is still too early to say the precious metal will correct back lower.
Silver has probably completed a Measured Move price pattern from the August 8 low. Such patterns consist of three waves in a zig-zag. It is another characteristic of these patterns that waves A and C are usually of a similar length. In the case of Silver, A and C reached a similar length. This further suggests prices will pause and take a rest for a while, or even pull back.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD holds steady above 0.6300; looks to US NFP for fresh impetus
AUD/USD stalls the previous day's pullback from the 0.6400 neighborhood, or over a two-week high, and oscillates in a range during the Asian session on Friday ahead of the US NFP. In the meantime, the USD struggles to lure buyers as Trump's sweeping tariffs lift recession fears, which might force the Fed to resume its rate-cutting cycle soon.
USD/JPY recovers slightly from multi-month low; upside seems limited ahead of US NFP
USD/JPY attracts some buyers during the Asian session on Friday and moves away from its lowest level since October set the previous day. Investors scale back their expectations that the BoJ would raise policy rate at a faster pace amid worries that Trump's new tariffs could negatively impact Japan's economy, which is seen weighing on the JPY.
Gold holds positive ground above $3,100, all eyes on US NFP data
Gold price recovers some lost ground to near $3,115 during the Asian session on Thursday after facing some profit-taking in the previous session. Escalating concerns over a global trade war and ongoing geopolitical risks boost the Gold price, a traditional safe-haven asset.
What to expect from Bitcoin and XRP following Trump tariffs: Experts weigh in
Bitcoin stretched its decline on Thursday, briefly dropping below $83,000 as President Trump's newly announced reciprocal tariffs extended the crypto market downturn by over 4%. The sustained decline and high volatility highlight Bitcoin's increasing risk to macroeconomic uncertainties.
Trump’s “Liberation Day” tariffs on the way
United States (US) President Donald Trump’s self-styled “Liberation Day” has finally arrived. After four straight failures to kick off Donald Trump’s “day one” tariffs that were supposed to be implemented when President Trump assumed office 72 days ago, Trump’s team is slated to finally unveil a sweeping, lopsided package of “reciprocal” tariffs.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.