Silver Holds Between $56-$59 After Major Surge

• Silver price action remained in a tight band on Friday as the metal hovered between 56 and 59 dollars following a powerful surge above a long-term resistance zone. The advance stemmed from a completed cup-and-handle formation that triggered a sharp upward move before the market entered a consolidation phase.

• The chart shows silver recently cleared the neckline of the pattern near 54 dollars, with a swift rally that pushed XAG toward the upper 50s. The current structure shows the metal trading sideways within a narrow box, with price fluctuations capped by 59 dollars on the upside and 56 dollars on the downside. This consolidation phase indicates that momentum is accumulating after the initial breakout. The technical setup highlights the stability of the newly formed support and the persistence of strong buying interest around the mid-50 range.

The current consolidation is ‘cooking,’ indicating that momentum is accumulating after the initial breakout

• The chart also underscores the significance of the completed cup-and-handle, traditionally viewed as a bullish continuation pattern in commodity markets. Silver’s move above the neckline aligned with a surge in trading interest and a shift in sentiment toward precious metals. The upper boundary at 59 dollars is acting as immediate resistance, while the 56-dollar level is serving as structural support, creating a compressed trading range that may precede a directional extension once market conditions align.

• This phase of consolidation is important because it reflects reduced volatility and potential energy buildup within the XAG market. With silver stabilizing after a significant technical breakout, the current price action may influence near-term sentiment across precious metals and shape expectations for broader commodity trends as the market awaits the next decisive move.

My Take: Silver’s tight consolidation after the cup-and-handle breakout suggests institutional accumulation rather than profit-taking. The $56-$59 range is textbook compression that typically precedes significant moves. Watch for volume expansion.

Source: Gold Predictors