Silver (XAG/USD) dropped sharply on Thursday after hitting $33.70, its highest level in seven weeks, before settling around $32.95. This drop came as the US Dollar made a slight rebound, and the metal faced resistance below the $34.00 mark, close to the peak seen in April. The decline in Silver happened just before the US PMI release, suggesting traders adjusted their positions due to the US Dollar steadiness following Wednesday’s breakout. Despite this setback, the overall trend remains positive. The market has recently broken out of a multi-week symmetrical triangle, which has been in play since May. Prices have surpassed the descending trendline resistance, nearing levels not reached since April. Thursday’s drop seems to be a normal retest of the breakout, with prices easing towards the support zone of $32.50–$32.70. This area coincides with the 21-day EMA and the previous triangle resistance, indicating market respect and ongoing buyer control amid short-term challenges. Momentum indicators, such as the RSI and MACD, suggest a market transition. The RSI is close to neutral, while the MACD stays slightly positive, showing minor signs of flattening. Key support above $32.50 should help maintain the bullish structure; a break below this level may signal further corrections. On the other hand, if prices rise above $33.50, it could trigger new buying and aim for April’s highs around $34.25. Recently, Silver appears to be following a typical pattern after a breakout. The move up to $33.70 was quite sharp, and the drop to $32.95 was somewhat expected as traders reassess, particularly near significant resistance levels. Additionally, the modest stabilization of the US Dollar played a role in this temporary decline. Overall, the structure reflects strength. The breakout from the symmetrical triangle restricting prices since May shows that bulls are firmly in control and confident. The descending trendline was tested several times and finally broke last week, adding credibility to the breakout. In this context, the current pullback should not be misinterpreted—it’s part of a usual retest of prior resistance. A crucial area now lies between $32.50 and $32.70. This zone is formed by the 21-day exponential moving average and the top of the previous triangle formation. These confluences often act as magnet zones where prices bounce or gather momentum for the next move. Support here indicates that market participants remain willing to buy dips, but any breach may shift momentum and encourage aggressive selling from short-term traders. Indicators provide additional insight. The Relative Strength Index, near neutral, does not show signs of exhaustion, supporting the idea that the trend may still have room to grow. The MACD, while slightly flat, is still indicating a positive difference between its signal and baseline, reinforcing that directional momentum isn’t gone; it’s simply on hold. For those taking a defensive approach, monitoring reactions around that support zone should be a priority. A daily close below this area could not only pull Silver lower technically but also unwind some of the recent long positioning. Conversely, a move above $33.50 with strong volume would confirm ongoing buying pressure, paving the way for another test of April’s $34.25 ceiling, a level that previously caused significant retracements. In terms of strategy, it’s not about rushing or completely changing your bias. Instead, focus on how price behaves around key turning points, both above and below. Momentum isn’t fading—it’s consolidating. Patience and clarity matter more than mere anticipation in phases like this.

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