Silver Rejected at $68: Bears Attempt to Regain Short-Term Control

Commodity

Summary:

XAG/USD is trading near $66.5-$67.0 after a volatile rebound from recent lows. Although today's recovery has been supported by a softer U.S. dollar and bargain hunting, the broader short-term structure remains vulnerable below the $68 resistance zone....

SELL XAGUSD

EXP

PENDING

68.000

Entry Price

66.200

69.100

65.169 +0.515 +0.80%

Pips

PENDING

66.200

Exit Price

68.000

Entry Price

69.100

Market Overview

Silver remains considerably more volatile than gold due to its dual role as both a precious and industrial metal. While easing geopolitical tensions have reduced safe-haven demand, expectations for another Federal Reserve rate hike continue supporting U.S. real yields, preventing a sustained rally in precious metals. Reuters reports spot silver has rebounded toward $66.48 after recent weakness, but the move is largely viewed as a technical recovery rather than the beginning of a new bullish trend.

Industrial demand continues providing long-term structural support, particularly from renewable energy and electronics, but short-term macroeconomic factors remain the dominant price driver.

Market Sentiment

Investor sentiment remains mixed. Short-term traders have been covering bearish positions following the sharp decline seen earlier this month, while institutional investors remain cautious ahead of additional U.S. inflation and labor market data.

The market currently lacks strong momentum buyers above $68. Instead, rallies toward resistance continue attracting profit-taking as traders anticipate prolonged restrictive monetary policy. Unless the dollar weakens significantly or bond yields reverse lower, silver is likely to remain vulnerable to renewed selling pressure.

Technical Analysis

Silver Rejected at $68: Bears Attempt to Regain Short-Term Control_1

On the M15 timeframe, Bollinger Bands (20,2) remain relatively wide after recent volatility. Price is approaching the upper half of the band but has yet to establish consecutive closes above the middle band, indicating the recovery remains corrective.

Ichimoku Kinko Hyo (9,26,52) continues showing a bearish structure. Price remains below the Kumo, Tenkan-sen is struggling to cross above Kijun-sen, and the future cloud remains negative, suggesting sellers still control the broader intraday trend.

Stochastic (5,3,3) has recovered from oversold territory and is approaching overbought conditions. If bearish divergence develops near resistance, another downward leg could begin.

The immediate resistance sits around 67.80-68.00, while support is located near 66.20, followed by 65.50 if selling pressure accelerates.

Trade Recommendation

Entry: 68.00

Take Profit: 66.20

Stop Loss: 69.10

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