Silver prices rebounded sharply on Thursday, recovering from a five-day low of $35.46 to climb above the $36.00 threshold. At the time of writing, the XAG/USD pair is trading at $36.30, posting a modest gain of 0.25% late in the North American session. The rally comes as the U.S. dollar continues to weaken, hitting its lowest level in nearly three years.
Technical Outlook: Bullish Pattern Signals Further Upside
Technical indicators suggest silver’s bullish trend remains intact. A notable ‘hammer’ candlestick pattern has emerged, typically a bullish reversal signal, indicating a potential retest of the June 9 swing high at $36.88. Should bullish momentum persist, the next targets for buyers include the year-to-date high and the psychological $37.00 mark. A decisive break above that level could push prices toward $37.49 — a peak last seen in February 2012, marking a 13-year high.
The Relative Strength Index (RSI) has exited overbought territory but remains steady, reinforcing the case for continued upward movement.
Key Support Levels
However, a downside break below the $36.00 level could trigger a retreat, with immediate support at $35.40 — a former resistance level from October 2012. Further declines could expose silver to additional supports at $35.00, $34.00, and ultimately $33.00.
In the short term, silver’s trajectory will likely depend on continued dollar weakness and sustained technical momentum.
