Silver Price Outlook in the Near Term

Silver at the Fundamental Level

Silver stabilized after a volatile week, with prices hovering near $48.70 per ounce on Monday following a week of extreme volatility. Investors are assessing the Federal Reserve's policy outlook, particularly in light of easing trade tensions between the US and China.

The Fed cut interest rates by 25 basis points, as widely expected, although Chairman Powell emphasized that another rate cut in December is not guaranteed.

Silver also hit record highs amid short selling pressure and a lack of liquidity in London, before retreating due to profit-taking.

Markets are now focused on key US data releases, including the ADP and NFP jobs reports.

Silver at the Technical Level

Silver is attempting to form an inverted head and shoulders pattern on the hourly timeframe, which targets $50.50 per ounce in the near term.

Any corrective pullback in silver is considered a good buying opportunity.

However, if the price breaks above 49.50, we anticipate a direct rise towards $50.50 in the short term, followed by $53 in the medium term.

This bullish scenario would be invalidated if the price breaks below the neckline and closes below it for at least one 4-hour candle.