Silver prices surged to $89 after breaking out from a descending triangle on May 7, but technical indicators suggest a potential pullback to $79. Currently trading near $86.94, silver remains within an ascending parallel channel. The four-hour RSI and MACD readings indicate fading short-term momentum, hinting at a possible correction.
Macro factors such as industrial demand and supply constraints continue to influence silver's price movements. Analyst Alexander Potavin notes that silver reacts strongly to economic downturns and shifts in interest rate expectations. The daily chart shows a bullish breakout at $89, with the RSI in bullish territory, but high volatility readings suggest an impending directional decision.
Traders are advised to monitor the $89 resistance and $83 support levels. A break above $89 could lead to a target near $101, while a drop below $83 might expose the $79 to $70 support zone. Macro conditions, including rate cut expectations, remain crucial for silver's next move.
Silver Hits $89 Amid Bullish Breakout, Faces Potential Pullback
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