FX.co ★ FX-Perfact | XAG/USD, SILVER

SILVER H4 Timeframe: Based on the SILVER price movement on the H4 timeframe as seen on the chart, the current technical structure indicates a fairly strong bullish recovery after a prolonged period of decline. The latest price is around 63.48–63.65, after briefly rising and testing the 64.15 area. This movement is significant because the price has successfully emerged from a long consolidation phase that previously occurred around 57.00–60.00. However, the latest increase still requires further confirmation as the price is facing a significant resistance area. Looking at the movement structure since mid-June, SILVER has previously been under dominant bearish pressure. The price fell from the 71.00 area and gradually formed a series of lower highs and lower lows until reaching the 54.70–55.00 area in mid-July. This area then became a crucial point because after reaching that level, selling pressure began to lose momentum. The price then moved into an accumulation and consolidation phase between around 56.50 and 60.00. This is where the market's character begins to change, as buying pressure slowly pushes the price past previous resistance levels. From the perspective of the 100-day moving average (MA), the blue line on the chart is currently hovering around 59.8–60.0 and is beginning to slope upward. This is a positive development, as the 100-day moving average (MA) was previously moving relatively downward while SILVER was still in a bearish trend. The price is now quite far above the 100-day moving average (MA), indicating that medium-term momentum has shifted to a more bullish trend. As long as the price remains above the 100-day moving average (MA), this indicator can serve as dynamic support in the event of a correction.

Meanwhile, the 200-day moving average (MA), indicated by the red line, is hovering around 61.2–61.4. The 200-day moving average (MA) had previously been moving significantly downward, but in recent developments, it has begun to appear flatter. The price's current position above the 200-day moving average (MA) represents a significant technical change. When the price manages to stay above the 200-day moving average (MA), it typically indicates that long-term bearish pressure is easing and the market is entering a bullish transition phase. However, it's important to note that the 100-day moving average (MA) is still below the 200-day moving average (MA). Therefore, the long-term trend is not yet fully bullish. The market is still in the process of developing a reversal structure. The most interesting aspect is how the price managed to break through the 61.35 area, which had previously served as a key resistance level. After passing through this area, the price moved up towards 62.75 and then broke through the 63.23 area. Successfully breaking through these two zones demonstrates buyers' increasing control. The 63.23 area now has the potential to shift from resistance to support. As long as the price can hold above this area, the opportunity for further upside remains open. On the upside, the nearest resistance level is around 64.15. This level is quite visible because the price recently spiked towards this area but was unable to maintain its position above it. The price reaction after touching 64.15 indicates profit-taking or short-term selling pressure. Therefore, 64.15 is a key resistance level in the short term. If the H4 candlestick closes strongly above 64.15 and the breakout is followed by sustained volume or momentum, SILVER could potentially continue its journey towards the next resistance level around 65.55, before facing a stronger resistance level around 66.80. The 66.80 level is a crucial horizontal resistance level, as it was previously an area where the price experienced a significant reaction. If SILVER can successfully break through 66.80, the technical structure will become more positive, opening up room for a move towards the 68.30 to 69.70 area. However, as long as the price remains below 66.80, the increase should still be viewed as part of the recovery process and not as full confirmation that a long-term bullish trend has formed. On the downside, 63.23 is the most important immediate support level. If a correction occurs from the current level, the price's ability to hold above this level will be a key indicator of buyer strength. A correction towards 63.23, which then results in a bullish rejection, could indicate that the previous resistance has turned into support. Conversely, if the price breaks below 63.23 and closes consistently below it, the short-term bullish momentum will begin to weaken. The next support level is around 62.75, which was also a key area in the recent breakout structure. If 62.75 fails to hold, the next focus will be on 61.35, which is adjacent to the 200-day moving average (MA). The 61.35 area holds greater technical significance as it represents the confluence of horizontal support and dynamic support at the 200-day moving average (MA). A bullish reaction in this area would indicate that the 200-day moving average (MA) is beginning to serve as the foundation for a new trend. Conversely, a strong break below the 200-day moving average (MA) could signal that the previous breakout was potentially a false breakout. Lower support is located around 58.47, then 56.50, and finally around 54.73. The 58.47 area is crucial as it previously served as the upper limit of a long-term consolidation. As long as the price remains above this level, the higher low structure of the recovery phase remains relatively intact. A drop below 58.47 would cast doubt on the intermediate bullish structure and open the possibility of SILVER re-entering a sideways phase. In terms of price action, the recent movement has been quite constructive. After forming a base around 54.73, the price began to create higher lows and then moved up through several resistance levels. The rise from 58.47 to 64.15 also demonstrated increased buyer aggression. However, recent candles indicate consolidation after the price reached 64.15. This is not always a negative situation. In a bullish trend, consolidation below resistance often serves as a preparation phase for the next breakout, as long as the underlying support remains intact. Therefore, a technical strategy in the current situation is more appropriately focused on price reactions in the 63.23–62.75 area and confirmation of a breakout at 64.15. As long as Silver remains above 63.23, the short-term bias remains bullish, with further targets at 64.15, 65.55, and then 66.80. However, traders should remain wary of the possibility of a false breakout if the price fails to maintain the 63.23 area and re-enters below the breakout zone. In conclusion , Silver on the H4 timeframe is exhibiting an increasingly bullish structural change, marked by the price moving above the 100- and 200-day moving averages (MAs) and successfully breaking through several key horizontal resistance levels. The rising 100-day moving average (MA) provides support for the medium-term bullish momentum, while the 200-day moving average (MA) around 61.35 serves as a crucial boundary between a bullish recovery scenario and the return of bearish pressure. Current major resistance levels are at 64.15, followed by 65.55 and 66.80, while key supports are at 63.23, 62.75, 61.35, and 58.47. As long as the price remains above 63.23, the potential for further upside remains wide open. Stronger bullish confirmation will be obtained if SILVER can break through and maintain above 64.15, while a drop below 61.35 would signal a loss of momentum