Author
Abdullah Mashlab
Published 28/11/2025, 17:08
Investing.com - Precious metals markets experienced a state of anticipation during Friday's session after the spot silver price against the USD XAG/USD rose to 54.08, with a 1.5% increase, getting closer again to its historical peak of 54.50.
This strong movement has pushed the market into a sensitive area swinging between a new bullish breakout or traders falling into a bullish trap that could return the price to lower levels in the coming hours, according to the WarrenAI platform.
WarrenAI platform analyses – available exclusively to InvestingPro subscribers – have enabled market participants to read this precise situation more accurately, benefiting from real-time monitoring techniques and AI models that analyze thousands of technical signals to provide a clearer vision of potential trends.
Don't let hesitation in precious metals markets miss clear trading opportunities. With the start of Black Friday discounts of up to 60%, InvestingPro available in Arabic offers the WarrenAI tool to analyze conflicting signals and identify optimal entry points with automated risk management, allowing you to make informed trading decisions in critical moments as prices approach historical levels.
Technical analysis at a crossroads between upward momentum and reversal probabilities.
WarrenAI data indicates that silver's movement since November 26 has been in a clear upward trend, as the price continues to form higher highs and higher lows sequentially. The super trend indicator known as Super Trend shows at 54.16 in green, indicating that buying strength continues so far, despite signs of relative slowing in upward momentum.
The double top pattern nearing completion at the level of 54.29 warns of a potential bearish reversal if the price fails to break through this area with a strong close. The MACD indicator, which stands for moving average convergence divergence, confirms this scenario, as its readings indicate a decline in buying momentum. However, a price close above the level of 54.30 is a temporary signal to mitigate this risk and reduce the chances of a bearish reversal.
Trading scenarios: Clear opportunities and risks that require careful management.
The WarrenAI platform presents three main scenarios:
Bullish scenario: Best shown with entry between 54.16 and 54.30, with a stop loss set at 53.91 and targeting levels between 54.54 and 55.00. The risk-to-reward ratio here is classified as moderate, while the confidence level remains medium.
Bearish scenario: Entry is required between 54.25 and 53.84 with a stop at 54.50, targeting levels of 53.75 then 53.41. However, the confidence level is low due to the prevailing strength of the bullish trend.
Neutral scenario: It is preferable to wait for a clear breakout of one of the key levels before determining a new direction.
According to the advanced tool analysis in InvestingPro, the best buying area is between 53.75 and 53.85, while areas between 54.25 and 54.35 are considered suitable for selling during momentum weakness. The area between 53.86 and 54.14 is advised to be avoided due to sharp fluctuations and low quality of signals.
Advanced technical analysis: Conflicting signals resolved by price movement.
Chart patterns indicate a struggle between a bullish flag pattern that is 80% complete and a double top pattern that is 95% complete. Here, trading volume becomes the most decisive factor, as any upward breakout without an increase in volume is usually a signal of a temporary bullish trap.
The price remains above the 50-period moving average at 53.81, supporting the current dominant bullish trend. However, the absence of a real increase in trading volumes despite the appearance of a bullish Marubozu candle raises questions about the sustainability of this momentary strength.
Risk management: A moment to test price discipline.
WarrenAI analyses recommend using a dynamic stop-loss method based on an ATR indicator value of 0.16 USD to minimize potential losses. It is also advised to move the stop to the entry point after reaching the first target to maintain the profits gained.
The platform highlights an important warning that any breakout above the 54.29 level without strong volume support often ends in a rapid pullback.
Fundamental lessons for traders: Avoid foggy areas and wait for confirmation signals.
InvestingPro's recommendations confirm that the strongest trading methods in similar moments depend on patience and waiting for real breakouts. Rushing in before surpassing the resistance of 54.30 or breaking 53.85 may put the trader in a risky and uncalculated position.
And although the market is approaching a historical turning point, the accurate reading of technical signals – as provided by WarrenAI – remains a crucial factor in protecting capital and seizing the best available opportunities.
Subscribing to InvestingPro helps access advanced analytical tools that provide a professional experience not available on traditional platforms. WarrenAI is one of the strongest of these tools, combining AI algorithms and real-time data analysis to offer realistic and predictive trading paths, giving traders a competitive edge in a fast-moving and volatile market like the metals market.
The ability to access composite scenarios, entry levels, automated risk management, and precisely calculated directional models makes the platform an ideal choice for the trader seeking to understand the bigger picture instead of just focusing.
Madd on individual indicators or surface readings.
