Silver (XAGUSD) Price Forecast: Bull Trend in Silver Accelerates as Buyers Dominate

Silver Extends Advance, Buyers Remain in Control

Silver continued its bullish advance on Monday, reaching a new high of $42.69. Buyers remain firmly in charge at the time of writing, with the day’s high possibly extending further before the session closes. If current momentum holds, silver is likely to end the day with a close in the top quarter of its trading range. That would reinforce bullish sentiment, marking the third consecutive session of higher daily highs and higher lows. Importantly, this action follows Friday’s breakout from a tight seven-day consolidation range, which produced both a new daily trend high and the highest weekly closing price for the current rally.

Breakout from Consolidation

The brief consolidation occurred around the center line of a rising trend channel and near the 10-Day moving average, highlighting the ongoing progression of price as it tracks within the channel. Once a breakout above the channel’s center line is sustained, the top boundary becomes a natural target. This strengthens the case for continuation of the bull trend.

Resistance in the recent seven-day range aligned closely with the 78.6% Fibonacci retracement of the long-term decline that began after the April 2011 peak at $49.81. The ability to clear this level reinforces the outlook for silver eventually retesting resistance near its historic high.

Broader Bullish Structure

Stepping back, silver remains in the midst of a larger bullish pattern. A breakout from a broad bull flag formation first occurred in 2023, though follow-through was delayed until March 2024, when a decisive advance began. That breakout carried prices into the current rally phase. The descending channel that formed the flag was preceded by a sharp $18.22, or 156.5%, advance in just five months from the 2020 trend low.

Measured move targets based on raw price have already been exceeded. However, when calculated as a percentage change, silver points toward a potential objective around $45.68, which corresponds to a 223.6% Fibonacci extension level. This confluence supports the view that bullish momentum remains intact and that higher levels could be tested before a more meaningful pullback develops.

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