Silver Hits Upper Channel Limit — Momentum or Rejection Ahead?

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Silver has been following a textbook ascending channel since mid-2024, with multiple clean Breaks of Structure (BoS) confirming sustained bullish momentum. Every major correction found support at well-defined 2D demand zones, allowing bulls to re-enter with confidence.

Now, price has reached the upper boundary of the channel — a level that has historically triggered short-term rejections or profit-taking. The key question: is this a breakout or another fade from the highs?

From a macro perspective, silver’s strength has been supported by several drivers:

  • Renewed demand for hard assets amid persistent inflation expectations.
  • Falling real yields and a weakening USD in recent months.
  • Positioning as both an industrial metal and a monetary hedge — giving silver dual tailwinds during reflationary narratives.


If Silver breaks and holds above this channel, it could trigger a new leg higher, potentially targeting $37 to $40. There’s little technical resistance above.

However, a rejection from the current level could open the door for a pullback toward the $34–33 region, or deeper into the key 2D demand zones near $31 and $29.80. These areas have acted as major accumulation zones in the past and may attract buyers again.

This is a technically and macroeconomically critical zone — the reaction here could define Silver’s next multi-week trend.

Penafian

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