Silver Dips Toward $55.40 Support After Rally

• Silver is finally giving traders what they’ve been waiting for—a dip worth buying. After a strong rally that pushed prices into overextended territory, the metal is now retracing toward major technical support levels that could define its next move.

• The pullback has brought Silver down toward the 50-day moving average, though it hasn’t quite touched it yet. This leaves the door open for more downside as the market hunts for solid ground. The real action is happening where the 70MA and the rising trend line meet near $55.40—a zone that’s shaping up as a meaningful support cluster.

• If sellers push harder, the next logical target sits around $54.37. That level lines up with the previous all-time-high breakout, making it another spot where buyers might step in. The question now is whether Silver finds its footing at $55.40 or needs to test deeper support before bouncing.

Silver has been knocked down toward the 50-day moving average but has not yet fully reached it, leaving room for further downside as the market searches for stronger support.

• Momentum indicators paint a picture of cooling but not collapse. RSI is hovering in neutral territory, showing the market isn’t oversold yet. MACD is trending lower, consistent with a normal pullback rather than a broken trend. Importantly, the moving averages—50MA, 70MA, and 210MA—remain stacked in bullish order, suggesting this is more of a pause than a reversal.

• Why does this matter? Silver’s recent run needed a breather. A healthy pullback to $55.40 or even $54.37 would reset momentum without damaging the uptrend structure. If support holds at these levels, it could set the stage for another leg higher. Traders are now watching closely to see if Silver stabilizes here or extends its slide before attempting to resume the rally.

My Take: This looks like a textbook pullback in a strong trend. The convergence of multiple support levels around $55.40 creates an attractive risk-reward setup for buyers. If Silver holds above $54.37, the bull case stays intact.

Source: TBones