Silver (XAGUSD) traded at $66.63 on September 21, showing a swift rebound from a brief dip below $66 earlier in the session. Intraday price action placed silver at the upper range, as buyers quickly regained control following the early decline.
Trendline breakout sparks bullish forecasts
A prominent analyst has pointed out a breakout above a descending trendline on the four-hour Economic Office chart. This trendline, originating from a local high in late August and connecting several lower peaks throughout September, placed resistance near $66.23. According to the analyst, silver’s move above this barrier opens the possibility for further gains, although a short-term pullback is anticipated before any substantial rise.
The main upside target remains $71.56, which closely aligns with a previous major high and stands as an important resistance level. A retest of the broken trendline would likely confirm whether buyers can maintain momentum and push towards this price zone.
Support has been increasing from the lows in July and August, while September’s decline stayed well above the longer-term trend. The $71.56 price level is now the major focus for bullish traders, as it marks horizontal resistance at the prior swing high.
| Price Level | Type | Significance |
|---|---|---|
| $71.56 | Resistance | Major bullish target, prior high |
| $66.23 | Breakout zone | Above descending trendline |
| $66.00 | Intraday support | Immediate downside reference |
| $65.80 | Support | Recent swing low |
Analysts emphasize that to sustain higher prices, silver must hold above these breakout and support levels, especially if market pressure leads to another retest.
Elliott Wave scenario signals room for further correction
Another perspective comes from More Crypto Online, which suggests that the Elliott Wave pattern for silver could require one more low before an extended move higher. The analysis indicates that silver’s price continues to move within a broad upward channel, following a significant rally from the 2025 lows. Recently, silver approached the lower boundary of this channel and entered a corrective phase, with the bounce reflecting a response to this downswing.
The analyst identifies a key support zone stretching from the low $50s up to near $60, visible as a horizontal green band on the chart. This region remains crucial for determining whether silver will produce another downturn within the Elliott Wave sequence.
Mini dictionary: Elliott Wave, a technical analysis method used to identify cyclical patterns in financial markets. It segments price action into waves, forecasting possible market movements based on crowd psychology and repetitive trends.
The pattern differs from a straightforward breakout, as it anticipates one more leg lower before a more sustained advance. However, the analysis only outlines a possible sequence and does not confirm that an immediate drop will occur.
The Elliott Wave count shows a possible corrective downturn, but confirmation is lacking. Current price action reflects a strong recovery within the day, offsetting some concerns raised by the wave analysis.
Intraday price action and technical indicators
TradingView data shows silver rebounding from an intraday low around $65.80 to $66.00, before climbing to $66.63. Price movement fluctuated within the upper and lower bands of the Bollinger Bands indicator during the session, suggesting ongoing volatility.
Buyers pushed silver just above the $66.50 and nearly $66.70 level before settling back to $66.63. Initial resistance stands at $66.70, followed by an extended target near $67. On the downside, $66.00 serves as a key intraday pivot, with the recent $65.80 swing low acting as immediate support.
The TradingView chart also includes the Chaikin Money Flow (CMF) indicator, but the absence of volume data means CMF does not provide confirmation of underlying buying or selling strength in the current XAGUSD setup.
