Silver (XAG/USD) has rebounded above $31.10, attempting to regain bullish momentum after a sharp drop. The recent bounce suggests buyers are stepping in, but resistance remains a challenge.
Technical Analysis
📈 Weighted Moving Averages Indicate Early Recovery
The 50 Weighted Moving Average (WMA) at $31.00 is below the 200 WMA at $31.31, signaling that the overall trend remains weak despite the rebound. A decisive move above the 200 WMA could confirm a stronger bullish shift.
📊 RSI Signals Strengthening Momentum
The Relative Strength Index (RSI) is at 57, showing improved momentum. If RSI surpasses 60, further upside could be expected, while a drop below 50 may indicate renewed selling pressure.
🔎 Key Price Levels to Watch
Silver is currently testing $31.10 as support while approaching key resistance levels. A break higher could open the door for further gains, while rejection might lead to another dip.
Key Levels to Watch
Support Levels:
- $31.10: Immediate support level where the market is stabilizing.
- $30.80: Stronger support if selling pressure resumes.
Resistance Levels:
- $31.31: 200 WMA acting as immediate resistance.
- $31.50: Key upside target if bullish momentum strengthens.
Fundamental Drivers
Silver’s movement remains influenced by economic data, inflation expectations, and risk sentiment. Precious metals have found support amid market uncertainty, while upcoming US economic reports and Federal Reserve commentary could impact further price action.
Outlook
If silver remains above $31.10, bulls could attempt a push toward $31.31 and $31.50. However, failure to hold above this level might lead to another pullback toward $30.80.
Traders should closely monitor price action and upcoming macroeconomic events to gauge the sustainability of the recovery.