Happy Friday, dear trader! Today, we come to you with a technical analysis of XAGUSD (Silver). Let’s dive into the analysis without delay.
Technical Analysis and Trading Signal for Silver (XAGUSD) on January 24, 2025 by Guriforex
Silver prices (XAGUSD) are showing strong bullish momentum, bouncing decisively off a key technical level. The metal recently retested the previously broken downtrend line, signaling the potential for further upside as global market uncertainty intensifies. With increasing geopolitical and economic factors driving demand for safe-haven assets, silver appears primed for a potential rally.
Silver Market Technical Analysis
- Trendline Break and Retest:
- The price has broken out of a significant descending trendline that has held since November. After a textbook retest of the trendline near the 30.35–30.90 zone, silver has started to rebound.
- Support and Resistance Levels:
- Support: Immediate support lies at 30.35, which aligns with the broken trendline and recent consolidation levels.
- Resistance: Key resistance is located at 32.10, marking the upper target for this bullish move.
- Volume Dynamics:
- Rising bullish volume supports the breakout, indicating strong participation from buyers and confidence in the potential rally.
Silver Market Context
The recent rise in silver prices comes amid growing economic and political uncertainty. Markets are digesting the potential impact of U.S. President Trump’s recent policies, which have introduced heightened volatility. Safe-haven demand for metals such as gold and silver has increased, making them attractive assets in times of instability.
XAGUSD Trade Setup
🔼 Bullish Scenario
- Consider buying XAG/USD ONLY if it consolidates above the 30.90 level, confirming the breakout.
- Target: The first major target is set at 32.10, providing a favorable risk-reward opportunity.
🔽 Risk Management
- A breakdown below the 30.35 support would invalidate the bullish scenario and could see prices revisit lower levels near 28.84.
Conclusion
Silver is at a pivotal technical and fundamental juncture. The successful retest of the broken trendline coupled with consolidation above 30.90 could trigger a significant rally toward 32.10. Traders should remain vigilant and follow price action closely for confirmation of bullish momentum.
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