Silver is sitting at a key decision area right now. After a clean push higher, a pullback, and then another leg up, structure still looks bullish. Price has been holding above the rising moving average and continues to make higher lows, which is usually a good sign for continuation.
That said, we are now pushing directly into a major resistance zone. This lines up with the prior high and the 0.0 fib level from the last move. Areas like this are where price often pauses, chops around, or rejects before making its next real move. This is not a spot where I want to guess direction. This is a spot where I want to wait for confirmation.
If this move is going to continue higher, I want to see price hold above the moving average, keep pullbacks shallow around the 23.6 to 38.2 fib zone, and then break and hold above current highs with expanding volume. If that happens, it would suggest another leg higher is likely.
On the other hand, if price can’t get through this area, I’ll be watching for rejection wicks, failed breakout attempts, and a loss of the moving average. That would open the door for a deeper pullback into the fib retracement zone, potentially toward the 38.2, 50, or even 61.8 levels. I’ll also be watching RSI for signs of momentum fading rather than focusing on the absolute reading itself.
RSI is elevated but not extreme. In strong trends, it can stay high longer than most people expect, so I care more about divergence, structure, and failure signals than the raw number. Volume has been expanding on pushes and contracting during consolidation, which is healthy. The next real expansion out of this range should give us direction.
Bottom line, this is not a place to predict. Price is compressing at resistance, and the next real move should come from either a breakout or a clear rejection. Until that happens, this is range behavior, and patience is key. Let price show its hand.
That said, we are now pushing directly into a major resistance zone. This lines up with the prior high and the 0.0 fib level from the last move. Areas like this are where price often pauses, chops around, or rejects before making its next real move. This is not a spot where I want to guess direction. This is a spot where I want to wait for confirmation.
If this move is going to continue higher, I want to see price hold above the moving average, keep pullbacks shallow around the 23.6 to 38.2 fib zone, and then break and hold above current highs with expanding volume. If that happens, it would suggest another leg higher is likely.
On the other hand, if price can’t get through this area, I’ll be watching for rejection wicks, failed breakout attempts, and a loss of the moving average. That would open the door for a deeper pullback into the fib retracement zone, potentially toward the 38.2, 50, or even 61.8 levels. I’ll also be watching RSI for signs of momentum fading rather than focusing on the absolute reading itself.
RSI is elevated but not extreme. In strong trends, it can stay high longer than most people expect, so I care more about divergence, structure, and failure signals than the raw number. Volume has been expanding on pushes and contracting during consolidation, which is healthy. The next real expansion out of this range should give us direction.
Bottom line, this is not a place to predict. Price is compressing at resistance, and the next real move should come from either a breakout or a clear rejection. Until that happens, this is range behavior, and patience is key. Let price show its hand.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.