Powerful upward momentum on the daily silver chart has recently pushed the price to a new all-time high of $85.338. However, today’s candlestick dynamic shows a battle at the top of its range, with increasing potential for a short-term correction.
Technical indicators paint the same picture. After hitting $84.568, quotes jumped substantially higher than the 20-day exponential moving average (EMA 20), sitting at $73.271. Such a significant divergence makes a pullback toward this level—the first tangible support—more likely. At the same time, the Commodity Channel Index (CCI)---currently standing at 96.49 but approaching 100—remains well below its December peak near 210, which was reached at similar price levels. This divergence, with quotes testing new highs while the indicator hovers lower, is a telltale sign of slowing momentum and serves as another reason for a short-term correction.
Nevertheless, buyers are not planning to give up in the medium term. The Relative Strength Index (RSI), holding firmly in the neutral-to-bullish area of around 63, provides strong confirmation.
Fundamentals also keep favoring precious metals in the long haul, forming powerful support. The escalating standoff between the Trump administration and the US Federal Reserve (Fed) has a direct impact on the central bank’s independence. Concurrently, ongoing geopolitical uncertainty is sustaining investor interest in safe-haven assets.
It is better to keep in mind, however, that these powerful fundamental drivers may have already been partially priced in by the market at the start of the month. Technical indicators suggest local overheating near key historical resistance. Profit-taking seems like a smart move in this situation.
Consider the following trading plan:
Sell silver at the current price. Given the proximity of key resistance and signs of weakening momentum from oscillators, it is a reasonable choice to lock in profits. Set Take profit 1 at $77.00 and Take profit 2 at $72.50. Place Stop loss at $88.10.
This forecast remains relevant from January 12 to January 19, 2026.
This content is for informational purposes only and is not intended to be investing advice.
