Silver (XAG/USD) is showing signs of a potential bearish reversal on the 4-hour timeframe. After a strong bullish rally, price has recently broken below a key ascending trendline and is now retesting the previous structure support turned resistance near the **\$38.95** zone — a potential **entry** point for short positions.
### 🔍 Key Technical Highlights:
* **Trendline Break:** Price violated the rising trendline, indicating weakening bullish momentum.
* **Supply Zone:** A clear supply area is forming around \$38.95, aligning with the retest of the trendline break.
* **Bearish Confirmation:** A rejection or bearish candlestick pattern from this area would signal continuation to the downside.
### 🎯 Bearish Trade Plan:
* **Entry:** Around \$38.95 resistance zone
* **Target:** \$37.60 major demand zone (prior consolidation area)
* **Risk Management:** Stop-loss ideally placed above the recent swing high at \$39.52
### 📉 Outlook:
This setup offers a favorable risk-to-reward opportunity as price looks ready to retrace deeper into the previous demand zone. A clean break and close below \$38.50 will further confirm bearish continuation
Trade active
Trade closed: target reached
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Disclaimer
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