Silver (XAGUSD) Price Forecast: Breakout Builds Strength as Bulls Eye $45+ Targets
NEW YORK (September 22) Silver’s rally continued Monday, climbing to a new trend high of $44.11 as bullish momentum strengthened. This marks the fifth consecutive weekly gain, underscoring the dominance of buyers. With prices pressing higher, silver is now on a likely path toward the next key resistance zone between $45.40 and $45.68, where multiple technical indicators converge. Beyond that range, a 161.8% long-term measured move projection of the 2020 rally, highlights $47.48 as a potential higher target. Together, these levels suggest that resistance around the April 2011 peak could be challenged before this leg of the advance completes.
Bulls Retain Control After Breakout
The bullish continuation follows a reversal off of support last Friday, when silver rebounded from the confluence of the 10-Day moving average and the centerline of its rising channel. That session closed with a wide-range green candle near the highs, sparking renewed momentum. Monday’s session has continued the pattern, with silver trading near its intraday highs and positioned to complete another strong candle close. This type of follow-through is often a hallmark of sustained demand, and the sequence suggests further short-term gains may lie ahead.
Rising Channels Define Price Targets
Silver’s advance is also framed by three overlapping rising channels on the chart. The long-term channel, marked by purple trendlines, saw a decisive bullish breakout on September 1, followed by persistent strength with limited pullback – a positive sign of underlying demand.
A secondary parallel channel, drawn from the April swing low, is now being tested at its upper boundary. Further confirmation of strength would be seen on a breakout above this resistance line, which would strengthen the case for additional upside.
Finally, a smaller rising channel suggests short-term upside potential toward its top boundary. Importantly, the upper region of this channel aligns with the broader $45.19 to $45.68 confluence zone, reinforcing its potential significance as a target area for the ongoing rally.
Outlook
As long as silver holds above last week’s support near $42.80, the path of least resistance remains higher. Failure at the $45–46 zone could invite consolidation, but bullish momentum currently favors a test of higher resistance levels.
FXEmpire
