Silver Nears Key Resistance Zone SEBI RA Rajneesh Sharma Cautions Pullback Risk

Silver (XAGUSD) is quickly approaching a major technical barrier between $37.5 and $38 per ounce, a zone that has historically capped previous rallies and triggered sharp corrections, according to SEBI-registered analyst Rajneesh Sharma.

The level also aligns with the upper edge of its ascending channel, marking a crucial inflection point for the metal.

Sharma noted that although silver's rally from around $28.6 has been strong, it is now approaching a key resistance zone marked by exhaustion points.

Unless silver closes the week above $38, this resistance zone is likely to hold, potentially leading to a pullback or period of consolidation, according to the analyst. Historically, silver has seen sharp drops from this zone, with pullbacks ranging between 10% and 15%.

Sharma believes entering long positions at this level offers poor risk/reward, as upside appears limited while downside risk is high.

Closing above $38 would confirm a breakout, opening the door for a move toward $40 and beyond. Failure to break out could trigger a pullback, with likely retracements toward support levels at $34.05 and $31.61.

The price of silver has rallied more than 3.5% over the past three sessions.

It is currently trading at $36.51 per ounce.

On Monday, silver hit an all-time high of ₹1,07,000 per kilogram.

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