Silver technical analysis: After a surge, it is pacing at a high level, is 43.50 a new target for bulls?
2025-09-15 16:36:38
Spot silver (XAG/USD) is currently entering a period of strong consolidation at high levels after a strong rally of over 1.5% in the previous trading day. During the European trading session on Monday (September 15), silver prices fluctuated narrowly around $42.15/oz. Following the previous surge, bulls and bears have reached a delicate balance, with the market digesting recent gains and searching for a new directional breakthrough.
Judging from the technical pattern of the daily chart, the price of silver is still running within a clear upward channel, and the overall technical structure remains intact, indicating that the dominant market sentiment is still bullish.
The CME FedWatch tool shows that the probability of the Federal Reserve cutting interest rates by 25 basis points at its September meeting has reached 100%, and further rate cuts are expected in the next two meetings, thus supporting the gradual rise in silver prices.
Geopolitical factors provided support for the prices of precious metals such as silver. Ukraine launched a major attack on Russian energy facilities last Sunday, and the United States pushed for tighter energy restrictions, further increasing market risk aversion.
It is worth noting that spot silver is currently firmly above the 9-day exponential moving average (EMA) (41.30). The persistence of this key technical level indicates that short-term price momentum remains strong.
However, the 14-day relative strength index (RSI) is currently slightly above 70, suggesting that silver has entered the overbought area and may need a technical correction in the short term. Nevertheless, from the overall trend point of view, the strong upward trend is still maintained, and buyers continue to dominate the market.
On the upside, the market's attention is focused on the $42.44 level reached on September 12, which is the highest point since September 2011. Once this key resistance is effectively broken, the price of silver is expected to further rise to the upper track of the rising channel at $43.50.
On the downside, silver prices are initially supported at the psychological level of $42.00. A break below this level could see them test the 9-day exponential moving average support at $41.30. More critical support is located at the lower channel track near $40.80. Only a break below the lower channel track would truly weaken the current bullish tone, at which point silver prices could face greater downward pressure, potentially pushing them further towards the 50-day exponential moving average support at $38.85.
(Spot silver daily chart, source: Yihuitong)
At 16:24 Beijing time, spot silver was trading at $42.16 per ounce.
Judging from the technical pattern of the daily chart, the price of silver is still running within a clear upward channel, and the overall technical structure remains intact, indicating that the dominant market sentiment is still bullish.
The CME FedWatch tool shows that the probability of the Federal Reserve cutting interest rates by 25 basis points at its September meeting has reached 100%, and further rate cuts are expected in the next two meetings, thus supporting the gradual rise in silver prices.
Geopolitical factors provided support for the prices of precious metals such as silver. Ukraine launched a major attack on Russian energy facilities last Sunday, and the United States pushed for tighter energy restrictions, further increasing market risk aversion.
It is worth noting that spot silver is currently firmly above the 9-day exponential moving average (EMA) (41.30). The persistence of this key technical level indicates that short-term price momentum remains strong.
However, the 14-day relative strength index (RSI) is currently slightly above 70, suggesting that silver has entered the overbought area and may need a technical correction in the short term. Nevertheless, from the overall trend point of view, the strong upward trend is still maintained, and buyers continue to dominate the market.
On the upside, the market's attention is focused on the $42.44 level reached on September 12, which is the highest point since September 2011. Once this key resistance is effectively broken, the price of silver is expected to further rise to the upper track of the rising channel at $43.50.
On the downside, silver prices are initially supported at the psychological level of $42.00. A break below this level could see them test the 9-day exponential moving average support at $41.30. More critical support is located at the lower channel track near $40.80. Only a break below the lower channel track would truly weaken the current bullish tone, at which point silver prices could face greater downward pressure, potentially pushing them further towards the 50-day exponential moving average support at $38.85.
(Spot silver daily chart, source: Yihuitong)
At 16:24 Beijing time, spot silver was trading at $42.16 per ounce.
- Risk Warning and Disclaimer
- The market involves risk, and trading may not be suitable for all investors. This article is for reference only and does not constitute personal investment advice, nor does it take into account certain users’ specific investment objectives, financial situation, or other needs. Any investment decisions made based on this information are at your own risk.
