silver has entered a consolidation phase just below a multi-month high reached earlier in the week, which bodes well for bullish prospects and suggests potential for further gains. Currently, silver is trading around the $32.10-$32.15 range, remaining relatively stable after hitting a four-month peak during the Asian session.
The recent price movements have indicated a strong bullish sentiment, highlighted by a breakout past a key descending trend-line resistance and a robust upward move above the $31.50 supply zone. Technical indicators on the daily chart reveal bullish momentum, as oscillators remain in positive territory without nearing overbought conditions. This suggests that the prevailing trend for silver is likely to continue upward.
If silver continues to rise from here, it may face resistance in the mid-$32.00 range, possibly near levels last seen a decade ago. A continuation of buying pressure could strengthen the bullish outlook and create opportunities for prices to reach the critical $33.00 level, which would be a significant milestone not achieved since December 2012.
Conversely, any substantial drop in price might be viewed as a buying opportunity, particularly in the $31.50-$31.40 range, which serves as initial support. Additional support zones can be found at $31.25 and around the $31.00 level. If prices breach this lower support, silver could decline to the $30.60-$30.55 range and potentially toward the psychologically significant $30.00 level. This decline aligns with the crucial support from the 100-day Simple Moving Average. A decisive break below this support could signal a reversal in momentum, leading to a deeper market correction.
