Silver Breaks 6000 And The Bulls Aren't Done Yet (Lab Note #34)

2025-12-10 11:19:07

(MENAFN- Investor Ideas) ( Newswire) Last week's scenario? Played out perfectly.

Silver bulls smashed through the key red resistance zone just above 5900, closed the gap, and broke that long-standing psychological wall at 6000. What happened next? A textbook follow-through. Asia picked up the bullish baton, the market gapped higher and silver... printed fresh highs at 6213.50.

So, what now?

With daily indicators flashing warning signals, and key technical levels getting closer... we're entering a zone where momentum, discipline and precision matter most.

Daily Chart (D1): The Breakout That Ignited the Fire

In our Friday'sLab Note #29, we wrote the following:

Well, that's exactly what happened.

Friday's red zone? Obliterated. The 6000 wall? Shattered.

Today's Asian session? Opened with a bullish gap (6084-6111), which pushed us all the way to 6213.50 (overshooting even the 6200 projection) in the following hours. At this point, it is worth noting that the above-mentioned green gap serves now as the first important support (if the bears try to correct recent upward move).

But here's the nuance:

All three key daily indicators (CCI, Stochastics, and RSI) are now in overbought territory.

Translation for beginners:

CCI > +100 = strong trend but nearing exhaustion
Stochastics > 90 = early warning of slowing momentum
RSI > 70 = bullish strength, but ripe for a pullback

So... while bulls are still in control, it's not the moment to chase blindly. Tactical awareness is the key.

Having said that, let's examine lower timeframe.

H4 Chart: Measured Move in Progress

The first thing that catches the eye on the above chart is breakout above the pink rising channel, which confirms bullish continuation. Therefore, if the move continues, the next stop could be around 6338-6340.

Why there?

Because in this zone the size of the upswing would be equal to the height of the broken channel. Additionally, in this area there is also the 200% Fibonacci extension.

This is where bears may attempt a comeback - especially if a fresh sell signals appears.

But let's be clear:

As long as the breakout remains intact (silver stays above the upper line of that broken pink channel, today's green gap is open and the barrier of 6000 holds), buyers remain in control.

What could happen if bulls push silver above 6340? In my opinion, the door swings open for the next leg higher - the same upper targets we outlined inLab Note #20:

My Takeaway: Here's What to Watch Now

Watch today's gap zone for any dip-buying interest.
6338 is the next likely upside target and bulls may lock in profits here - be ready.
Daily signals from all indicators are hot and if very short-term reversal signs appear, don't ignore them. Take tactical profits or scale down risk.
But above 6340? It's go-time again. In other words, such price action would confirm a sustained breakout with more room to run.

Final thought: silver just gave us a textbook breakout... and might be setting up for another.

You don't want to miss the next move.

Stay sharp, stay tactical. See you on the next chart.

Anna

Trading Lab Founder

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