Silver Consolidates in Ascending Triangle as Buyers Eye Breakout

Market Overview

Silver prices have entered a consolidation phase after a two-week rally, pausing near recent highs as traders reassess short-term positioning. The market has seen partial profit-taking from early bulls, particularly ahead of key U.S. inflation data later in the day. Despite this, the overall bullish sentiment remains intact, supported by steady industrial demand and lingering geopolitical uncertainty. On Tuesday, silver continues to attract attention from traders watching for a potential breakout from its current consolidation pattern.

Technical Analysis

On the 1-hour chart, silver is trading within an ascending triangle pattern, a technical formation that typically precedes a bullish continuation. Price action has repeatedly tested the upper boundary of the triangle, currently around 32.370. A confirmed breakout above this level could unlock fresh upside momentum, setting the stage for a run towards 32.434, followed by 32.516 and the higher target at 32.607.

The RSI remains above 50, indicating that buyers still hold a modest advantage. Meanwhile, the MACD is near the zero line, hinting at a lack of short-term momentum but showing signs of a potential bullish crossover should price sustain upward pressure. Moving averages continue to support the underlying upward trend, aligning with the pattern’s bullish implications.

Alternatively, failure to break the triangle’s ceiling could prolong the consolidation. A move below 32.133 would mark a bearish breakout from the pattern, likely initiating a corrective move towards lower support zones.

Key Technical Levels

Resistances: 32.434, 32.516, 32.607

Supports: 32.279, 32.133

Fundamental Drivers

This afternoon, attention shifts to U.S. export and import price indices for March. While consensus suggests export prices will hold steady with a 0.1% monthly rise, import prices are expected to slow to 0.1% from the previous 0.4%. Any deviation from forecasts could stir volatility in the U.S. dollar, indirectly influencing silver through its inverse correlation. A weaker-than-expected dollar may provide the catalyst needed for silver to break out of its current range.

Conclusion

Silver remains in consolidation within a bullish triangle pattern, with buyers eyeing 32.434 and beyond. A drop below 32.133 would invalidate the bullish structure.

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