Trader wavering in front of the $54.50 'wall'... Continuing bullish trend vs. correction signals?

Silver(XAG/USD) approached $54.45 last Friday during Asian hours, nearing the highest level since mid-October. However, a sudden surge of selling pressure emerged in this zone, driven by profit-taking sell orders. Currently, the price is consolidating in the mid-$53 range, forming a box pattern, and maintaining an approximately 0.2% daily increase. From a weekly chart perspective, it still shows signs of strength.

$54.40~$54.50 Range, the Real ‘Opportunity’ Point

From a technical standpoint, the $54.40~$54.50 zone is a clear resistance(sell wall). There are concerns that multiple high points on the daily chart may form if the price fails to break through this level several times. However, it should not be hastily viewed as a bearish signal, as major oscillators still point to positive territory. The current price correction is more likely a temporary pullback within an upward trend.

Bearish Scenario: The ‘Real Fight’ at $53

If silver prices decline, how low could they go? The $53.00 psychological level is where traders aiming for low-cost buys are waiting. The Asian session low at $53.25 is the first line of defense, and if broken, the price could fall to the previous day’s low of $52.65. What if it drops to $52.00? That would be a sign of a short-term downtrend.

Bullish Scenario: Signal from Breaking $55

Conversely, what happens if buying pressure remains strong? If the price breaks above the $54.25 resistance, the next target is the October high of $54.75. If it successfully settles above the psychological resistance level of $55.00(Round Figure), it could signal the start of a new rally.

In conclusion, Silver(XAG/USD) is still in a blurry trend phase. The reason why the $54.50 opportunity zone is important is because the movements here will determine the future direction.