Introduction
Silver futures are testing an important support level, which could shape the trend for the next few weeks. Silver and Gold are very closely correlated but there are often times we see silver act as a leverage play for gold and the metals in general. This is one reason why this level is so interesting.
Right now, SIL is testing the 50-day MA and a monthly support zone at roughly $62.50. It is also a 50% retracement of the recovery rally we saw from mid July – mid August. These are the three main factors that is forming the bullish case so what is next?
| Price zone | Role | What traders should watch |
|---|---|---|
| $74–$75 | Major overhead resistance | Green moving average and an area of previous trading activity. |
| $69–$72 | Main recovery barrier | August highs; clearing this zone would materially improve the daily structure. |
| $67–$68.50 | Secondary resistance | Recent September lower-high area. |
| $65–$66 | First recovery hurdle | Nearby congestion that buyers need to reclaim to build momentum. |
| $62.50–$63.50 | Key support | Highlighted historical zone beneath current price. |
| $59–$60 | Initial downside support | Repeated trading activity within the summer base. |
| $56–$57 | Major downside support | July lows and the foundation of the August recovery. |
What is next?
Todays session (17 September) and for the next few, bulls want to see a sequence of green candles bouncing out of this support zone. It could also be the opportunity to already begin accumulating for swing traders, but for day traders, a green close above $65.475 is the confirmation to go long.
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This analysis is for educational and informational purposes only and does not constitute trading advice or a recommendation to buy or sell any futures contracts. Futures trading involves significant risk and may not be suitable for all investors. Always conduct your own research and consult with a licensed financial professional before making trading decisions.
