Silver (XAGUSD) Price Forecast: Consolidates After Breakout, Trend Remains Firmly Bullish

Weekly Breakout Extends Bullish Bias

Silver showed strength last week, rallying to a four-week high of $39.06 before closing Friday at $38.87 — its highest weekly closing ever. Monday’s session saw a modest pullback, with a high of $39.00 and a low of $38.04. Despite the mild weakness, the range remained in the top half of Friday’s trading range, signaling that buyers retained control. Importantly, Friday’s advance followed a successful back-test of support at the rising 20-Day moving average, now at $37.89. That test reinforced short-term dynamic support before silver surged to a 20-Day high, confirming a continuation of the uptrend.

Trend Structure Intact Above Key Averages

Friday’s breakout also pushed silver above the prior swing high at $38.74, keeping it firmly within its rising trend channel. That channel has been respected since late July, and the recent pullback to $36.96 tested both the lower channel line and the 50-Day moving average — both of which held. The 50-Day line has now supported two significant swing lows: one in early August and the other at the most recent trough. That reinforces its role as medium-term trend support. As long as silver holds above the 50-Day (currently near $37.10), the broader uptrend remains firmly intact.

Near-Term Targets and Resistance Levels

With silver consolidating in the upper third of Friday’s wide-range day, attention now turns to the July high at $39.53 as the next logical upside target. A decisive breakout above that swing high would strengthen the bullish outlook and confirm a breakout of a rising trend channel. There is potential resistance around the top of the channel. Twice in July, silver approached that upper boundary and failed — triggering short-term corrections each time. A similar reaction could unfold again if price stalls there.

Channel Top Could Define Next Move

For now, silver is in a constructive technical position: it has broken out above interim resistance, retested dynamic support, and is consolidating near recent highs. The next major signal will come from how price behaves near the channel top and trend high. A clean breakout through each would suggest accelerating momentum and the potential for a new leg higher.

Alternatively, another rejection at channel resistance could lead to a corrective retracement — possibly back toward the 50-Day line. Until either scenario plays out, silver remains bullish within its rising channel and supported by its key moving averages.

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