FX.co ★ Silent-person | XAG/USD, SILVER

Support Levels The primary support zone is located at 67.375 – 67.680, which represents the recent swing low region. The level 67.680 is the higher end of this cluster, while 67.375 is the ultimate line of defense shown on the chart. A secondary support lies at 67.985, which previously acted as a reaction point during the descent. Given the downtrend from 70.120 down to 67.375, any bounce from this zone must hold above 67.375 to prevent further losses toward 67.000 (not shown but implied). The level 68.290 also offers minor support. Resistance Levels The most significant resistance is at 70.120, which is the swing high and the primary bull barrier. Below that, 69.815 and 69.510 form the immediate resistance levels. The cluster around 69.020 – 69.380 (including 69.055 and 69.110) is the near-term ceiling – if price can reclaim above 69.380, the first target for buyers would be 69.510. The level 69.205 and 68.900 are intermediate resistances that price must clear during any corrective bounce. Until price breaks above 69.380, the broader trend remains bearish. Trading Plan Given the clear downtrend and price trading near the lower end of the range, two approaches exist. For aggressive traders, a long bounce can be attempted on a confirmed hold above 68.290 with a stop loss below 67.985 (e.g., at 67.900), targeting 68.595 and then 68.900. For trend-followers, the preferred strategy is to wait for a pullback to 69.205 – 69.510 and enter short, with a stop loss above 69.815, targeting a retest of 68.900 and then 68.595. A break below 67.375 would signal further downside toward 67.000. Risk to Reward Ratio For the short setup: assuming an entry at 69.205, a stop loss at 69.500 (0.295 points risk – Silver: 1.0 = $1), target at 68.900 gives 0.305 points reward (69.205 - 68.900 = 0.305), yielding a 1:1.03 risk-to-reward ratio. Target at 68.595 gives 0.610 points reward, yielding a solid 1:2.07. For the long setup at 68.290 with a 0.305-point stop (to 67.985) and first target at 68.595 (0.305 points reward), the ratio is exactly 1:1, improving to 1:2.00 to 68.900 (0.610 points reward). The long bounce near support offers a favorable risk-reward at current levels. Summary Silver on the H1 timeframe is in a downtrend, having fallen from 70.120 to the current support zone at 67.375 – 67.680. The bias remains bearish as long as price stays below 69.380. Traders can either buy the bounce near support for a scalp to 68.595–68.900, or wait for a retrace to 69.205 – 69.510 to enter short targeting the lows. A decisive break below 67.375 would accelerate selling toward 67.000, while a break above 69.815 would be needed to question the downtrend. For now, buying near support offers a favorable risk-reward for a corrective bounce.