FX.co ★ XAG/USD, SILVER

SILVER H4: Bullish Structure Could Support Another Bounce Silver is showing an interesting setup on the H4 chart after a strong recovery from the lower levels seen in late July and early August. The most important thing I notice here is that the market structure has clearly improved. Price has moved above both major moving averages, and the shorter moving average is now rising, which suggests that buyers are gradually gaining control. At the moment, Silver is trading around 63.725 after pulling back from the recent high area near 66.00–67.00. This pullback does not look bearish to me yet. Instead, it can be viewed as a normal correction after the previous strong move higher. The key area I am watching is around 62.90–63.70. This zone has already acted as an important reaction area, and it is also close to the rising moving average. If buyers manage to defend this support and we get a strong H4 bullish candle or a clear rejection from this zone, I would expect another attempt toward 65.00 first. A clean break above 65.00 could open the way toward 66.00–67.20, where Silver previously faced strong selling pressure. On the other hand, I would not ignore the downside risk. If H4 candles start closing below 62.90, the bullish setup would become weaker and price could move toward the 60.70–61.00 area. That level would then become important for the next reaction.

For now, I prefer to watch the reaction around 62.90–63.70 instead of chasing the market. The overall structure remains constructive as long as price holds above the rising moving averages and continues forming higher lows. A confirmed bounce from support would give a much better risk-to-reward opportunity than entering in the middle of the range. The setup is bullish, but confirmation remains important before taking any position.