Silver sideways consolidation support at 3500

Silver – Technical Analysis

The Silver price action continues to exhibit a bullish sentiment, underpinned by a prevailing rising trend. However, recent intraday moves indicate a corrective pullback, reflecting short-term consolidation within the broader uptrend.

Key Technical Levels:

Support:

3,500 – Primary support and previous consolidation zone; critical for maintaining bullish structure.

3,450 – Secondary support; potential downside target if 3,500 fails.

3,390 – Key lower support; aligns with a broader demand area.

Resistance:

3,720 – Immediate upside resistance; first target on a bullish bounce.

3,790 – Intermediate resistance; aligns with recent swing highs.

3,850 – Long-term resistance target; marks the upper boundary of the current bullish channel.

Scenario Analysis:

Bullish Continuation (Base Case):
A bounce from the 3,500 level would affirm the corrective pullback as temporary, with potential for a bullish continuation targeting 3,720, followed by 3,790 and 3,850 over a longer timeframe.

Bearish Reversal (Alternative Scenario):
A daily close below 3,500 would undermine the current bullish outlook and signal a deeper retracement, with downside risk toward 3,450 and potentially 3,390, where structural support may stabilize price.

Conclusion:

Silver remains structurally bullish, with the current pullback offering a potential entry point within the trend. The 3,500 level is the key pivot—holding above it supports further upside continuation, while a breakdown below would raise the risk of a deeper correction. Traders should watch for price action confirmation at this level to validate the next directional move.

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