Silver (XAG/USD) Price Forecast: Bullish Reversal Targets $72

Resistance Turns Into Support

Silver extended its short-term bull trend on Monday with a marginal new high of $65.29. Price action for the session confirmed support near a key prior resistance level, reaching a low of $62.99 for the session before buyers stepped in and drove price to new highs for the day. That low was a successful test of support near the lower swing high from early July at $63.28.

The confirmation that this price zone has switched from resistance to support further strengthens the advance and suggests that higher targets may be reached before momentum falters. Moreover, the 50-day moving average has been reclaimed for two sessions, with Monday’s close holding above it; the average is currently near $61.94.

$66.53–$66.10 Comes Into View

Trading remains near the highs of the day at the time of writing and silver is on track to close in the upper third of the day’s range and post a new daily closing high for the current advance. The strength confirmed above puts the next higher target in sight near $66.53 to $66.10. That zone consists of the 161.8% Fibonacci projection for a small rising ABCD pattern and the 50% retracement of a prior decline.

Bigger Resistance Test

Nonetheless, the successful test of support near the $63.28 lower swing high further confirms the trend reversal signal that triggered above that level. Beyond the $66.53 to $66.10 target zone, the area around the 200-day moving average near $71.18 presents the more significant potential resistance zone, especially since it lies near a long-term rising trendline, which also represents possible dynamic resistance.

The 200-day moving average begins a range of possible resistance up to the nearby 50% retracement of a second prior downswing at $72.08. Further enhancing the potential significance of the $71.18 to $72.08 price zone is another lower swing high from the prior downtrend structure at $71.56. A recovery above that swing high would trigger another trend reversal signal, making the $63.28 support test discussed at the beginning of the analysis an important early confirmation of the broader trend reversal.

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