Silver Price Builds Momentum Near Key Resistance

• Silver has entered a consolidation phase after its recent surge, holding steady in overnight trading following strong gains. The metal appears to be setting up for one final touch on the right side of the cup pattern before potentially launching its next upward move.

• The chart reveals a clear cup-shaped formation, with support anchored near $46 and resistance at $52. This accumulation pattern typically precedes bullish continuation. The 50, 70, and 210-day moving averages are all trending upward, confirming solid short and medium-term momentum. An RSI reading near 59 shows strength without entering overbought territory.

• Precious metals sentiment is improving as traders anticipate potential rate cuts and renewed inflation concerns. Silver historically thrives during economic uncertainty, benefiting from both industrial demand and safe-haven appeal. While it’s unclear whether a handle will form during this consolidation, the setup looks increasingly ready for a breakout.

• A decisive push above $52 would likely trigger technical buying and confirm the cup pattern breakout. However, a drop below $50 could extend the sideways action. For now, the structure remains bullish, with traders watching for the catalyst that could spark silver’s next major rally.

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Source: TBones