Silver is trading at approximately $38.50, recovering from last week’s dip, and is just shy of the $39.13 high reached in July. Key resistance levels are identified at the psychological $39.00 level and the July 14 high, with support around the $38.00 and $37.50 zones.<\/p>\n
Momentum indicators, including the RSI near 70 and ADX rising, suggest a bullish bias. The silver price is supported by a weaker US Dollar, pressured by easing Treasury yields. It shows renewed strength, holding above 50- and 21-period EMAs, signalling buying interest.<\/p>\n
The RSI sits near the overbought zone at 70, and the ADX at 20 indicates strengthening trend momentum. For a stronger push, a breakout above the $38.80-$39.00 resistance range is needed. Essential support levels are $38.00 and $37.50, while resistance is at $39.00 and $39.13.<\/p>\n
On the daily chart, silver is in an uptrend within an ascending channel since April. Strong support is provided by the 21-day EMA at $37.18 and the 50-day EMA at $35.92. Continued movement above the $37.00-$37.50 region maintains the bullish outlook, with potential for a breakout toward $40.00.<\/p>\n
We believe the current bullish momentum presents a clear opportunity for derivative traders. The sustained price action above key moving averages, coupled with a weakening U.S. Dollar following softer-than-expected May inflation data, reinforces our positive outlook. The critical move to watch for is a decisive break and hold above the $39.13 resistance level.<\/p>\n
For those anticipating a continued rise, we see value in purchasing call options with strike prices at or above $40.00, especially if the price clears the July high. Recent Commitment of Traders (CFTC) reports show that money managers have already been increasing their net-long positions, suggesting institutional conviction behind this upward trend. This strategy allows traders to capitalize on a potential sharp rally toward the next psychological benchmark.<\/p>\n
Alternatively, selling out-of-the-money put options with strike prices near the $37.50 support level could be an effective strategy to collect premium. This approach benefits from both a rising price and time decay, backed by the strong support provided by the 21-day EMA. The ascending channel in place since April gives us confidence that these lower levels will hold.<\/p>\n
The fundamental picture supports this technical strength, as industrial demand remains exceptionally strong. The Silver Institute forecasts that demand from the photovoltaic industry alone will account for 20% of total silver consumption this year, creating a solid demand floor. This underlying consumption helps insulate the price from minor speculative pullbacks.<\/p>\n
While indicators suggest strong buying interest, the Relative Strength Index nearing 70 advises a degree of caution against entering prematurely. We would prefer to see a confirmed breakout above the $38.80-$39.00 range before committing to new aggressive positions. This patience will help avoid being caught in a potential short-term reversal or consolidation period.<\/p>\n
Historically, once silver clears significant multi-year highs, it can experience periods of rapid price appreciation, similar to the rally seen in 2010-2011. A sustained move above the current resistance could signal the start of a more significant leg up. Therefore, we are positioning for a breakout while using the identified support zones to manage risk.<\/p>\n","protected":false},"excerpt":{"rendered":"
Silver holds above key EMAs; bullish momentum continues toward $40.00 amid weaker Dollar and strong trend.<\/p>\n","protected":false},"author":62,"featured_media":0,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-26903","post","type-post","status-publish","format-standard","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/26903","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/comments?post=26903"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/26903\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=26903"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=26903"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=26903"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}