Silver touched $57.9975 on the 5-hour chart, just below a resistance zone of $58.50 to $59.00. The trend remains bearish, and the analysis lays out both bearish and bullish trade setups around the zone.
Silver traded at $57.9975 on the forming 5-hour candle, landing just below the $58.50 to $59.00 resistance zone. The zone clusters the 20-period SMA, the 50% Fibonacci retracement and SuperTrend, according to Investing.com.
Trend stays down despite a momentum bounce
The trend is still bearish: price sits under the 50 and 200 SMAs, and SuperTrend remains in "down" mode.
MACD crossed bullish, moving from -0.897 to -0.836. However, RSI at 44.21 suggests only a partial recovery from oversold, not true strength.
Two trade setups around the zone
The analysis lays out a bearish and a bullish plan. The bearish setup carries high confidence: an aggressive entry at $58.50 on rejection at resistance, a conservative entry at $57.50, a stop at $59.65 and targets of $56.50, $55.56 and $54.00.
The bullish setup carries low confidence. Its aggressive entry is $58.00 on a hold above the 38.2% Fib, and its conservative entry is $59.10 on a break of all resistance. The stop sits at $56.80, with targets of $60.50, $61.88 and $64.30.
Levels that decide the next move
The pivotal swing low is $55.56, and losing it could ignite a fresh round of selling. For bulls, the analysis flags a "bull trap" alert: if price fails at $58.60, the rally is likely just a pause in the broader slide.
Bears face their own risk, an aggressive relief rally through $59.00 that could trigger short-covering. The $57.00 to $58.00 "No-Trade Zone" is the chop in the center, and the analysis advises avoiding entries until price breaks cleanly above or below it.
Source: Investing.com
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