Technical Analysis of Silver (XAG/USD) – 1H Chart1. Trend Identification
Medium-Term Bullish Trend: The price has been rising since early March, reclaiming the 200-period moving average (blue line), a sign of renewed buying strength.
Short-Term Consolidation: The price is currently testing resistance near the Point of Control (POC) at 32.551, indicating an important decision point for the next move.
Bearish Short-Term Volume Shift: The last 60 bars show higher selling volume (-33.63%), suggesting potential weakness in the short term before a breakout or pullback.
2. Key Support & Resistance Levels
Immediate Resistance: 32.55 - 32.60 (POC and recent highs).
Immediate Support: 32.00 - 32.20 (recent demand zone).
Stronger Support: 31.80 - 31.50 (lower channel boundary).
Upside Targets: 33.00 - 33.20 (upper channel projection).
3. Volume Analysis
Last 120 Bars Volume: Up Vol > Down Vol by 12.95%, showing medium-term buying dominance.
Last 60 Bars Volume: Up Vol < Down Vol by 33.63%, indicating short-term selling pressure, which may lead to a minor pullback before continuation.
4. Chart Patterns & Projections
The projected path (blue and red channels) suggests two scenarios:
Bullish Breakout: Above 32.55, targeting 33.00 - 33.20.
Bearish Pullback: A rejection at 32.55 could push the price toward 31.80 - 31.50 before a potential recovery.
Trade Setups & Risk Management
1. Long Trade Setup (Bullish Scenario)
Entry: Buy on breakout above 32.60 (confirmation of resistance breach).
Stop-Loss: Below 32.20 (to avoid false breakouts).
Targets:
First Target: 33.00
Final Target: 33.20 (upper channel boundary).
Risk-Reward Ratio: 1:3 or better.
2. Short Trade Setup (Bearish Pullback Scenario)
Entry: Sell below 32.20 (confirmed breakdown).
Stop-Loss: Above 32.60 (recent resistance).
Targets:
First Target: 31.80 (lower channel mid-support).
Final Target: 31.50 (strong support zone).
Risk-Reward Ratio: 1:2 or better.
