FX.co ★ FX-Perfact | XAG/USD, SILVER

SILVER H4 Timeframe: SILVER's movement on the H4 timeframe indicates a consolidation phase after a strong bullish rally that peaked at 88,630. After reaching this point, selling pressure emerged quite aggressively, pushing the price sharply down to the support area of 73,762. This rapid decline indicates significant profit-taking by market participants following the rally that began in early May. However, the rebound from the support area indicates that buying interest remains solid, preventing the medium-term trend from fully turning bearish. In terms of Moving Averages, the 100-day moving average (MA), indicated by the blue line, is now beginning to move horizontally after previously exhibiting a strong upward slope. Meanwhile, the 200-day moving average (MA), indicated by the red line, continues to trend upward slowly, reflecting that the major medium-term trend remains bullish despite weakening upward momentum. The current price position around both MA lines indicates the market is in a phase of determining a new direction. When the price moves around the 100-day and 200-day moving averages simultaneously, the market is typically seeking balance before determining its next trend continuation. The nearest resistance area appears to be at 79,250. This zone is the first barrier that must be broken if SILVER is to continue its bullish recovery. If the price can consistently close above this level, the opportunity for strengthening towards the next resistance at 81,638 will increase. The 81,638 resistance area is crucial because it previously served as a distribution point before the sharp decline occurred. If buying momentum increases again and this area is successfully broken, the market has the potential to move towards 85,256 and even retest the peak of 88,630. The highest level at 89,372 is a major resistance level that is currently quite difficult to penetrate without a strong fundamental catalyst.

Meanwhile, the main support area is at 73,762, which previously successfully withstood selling pressure. This level is crucial because it marks the last rebound point after an extreme decline. As long as the price remains above this area, the potential for a bullish correction remains intact. However, if this support is broken, bearish pressure could regain dominance and push the price towards the next support at 69,717. A deeper decline could even open the way to the 66,737 to 64,041 area, which is a major support in the medium-term structure. The candlestick pattern at the end of the chart indicates a gradual recovery after experiencing significant price pressure. The emergence of several small bullish candles around the 100- and 200-day moving averages (MAs) indicates that buyers are beginning to take control of the market. However, the relatively small candlestick sizes also indicate that buying power is not yet fully dominant. This makes SILVER potentially likely to move sideways in the short term before a clearer breakout occurs. Technically, as long as the price can hold above the 76,870 to 73,762 area, the medium-term bias remains neutral to bullish. The bullish scenario will strengthen if the price manages to consistently return above the 100- and 200-day moving averages, accompanied by increasing buying volume. Conversely, if the price falls back below these two moving averages and breaks through key support, the corrective bearish trend will likely resume. Current momentum suggests the market is in a transition phase after the high volatility of the previous few days. Short-term traders will likely watch the 79,250 area for confirmation of the next direction. A breakout above this resistance could be an early signal that an uptrend is starting to form. However, as long as the price remains below resistance and around the moving average, the market remains vulnerable to two-way fluctuations with a consolidative tendency. Therefore, SILVER is currently recovering on the H4 timeframe after strong bearish pressure, but its medium-term bullish structure has not been completely broken, as the 200-day moving average (MA) remains trending upward and key support remains intact. Further movement will be heavily influenced by the price's ability to break through the nearest resistance or maintain key support.