Key Moments:
- XAG/USD trades near $82.60, advancing for a second straight session as it approaches the upper edge of a descending wedge around $84.50.
- The 14-day RSI sits at 47 in neutral territory and has moved higher, indicating stabilizing momentum.
- Key support is located at the rising 50-day EMA at $79.91, with downside risk extending to $64.08 and $59.10 if that level fails.
Technical Picture: Momentum Stabilizes Near Wedge Resistance
Silver (XAG/USD) extends its recovery for a second consecutive session, trading around $82.60 per troy ounce during early European hours on Monday. On the daily chart, price action is pressing against the upper boundary of a descending wedge formation, a configuration that points to the possibility of an upside reversal if resistance gives way.
The 14-day Relative Strength Index (RSI) is positioned at 47, within neutral territory, and has edged higher. This improvement in the momentum gauge suggests that selling pressure has eased and that conditions are stabilizing as the metal tests a key technical barrier.
Moving Averages: Supportive Medium-Term Trend, Capped Short-Term Upside
XAG/USD remains above the rising 50-day Exponential Moving Average (EMA), reinforcing a supportive medium-term backdrop. However, the spot price continues to trade below the declining nine-day EMA, which is currently limiting immediate upside attempts.
The gradual rise in the 50-day EMA signals persistent underlying demand for Silver. A decisive move back above the nine-day EMA would be a constructive development for bulls and could strengthen upside momentum toward a key resistance marker at $121.66.
| Technical Level | Description | Price |
|---|---|---|
| Spot price | Early European trade | $82.60 |
| Upper descending wedge boundary | Immediate chart resistance | $84.50 |
| Nine-day EMA | Short-term moving average resistance | $84.66 |
| 50-day EMA | Key trend support | $79.91 |
| All-time high | Recorded on January 29 | $121.66 |
| Eight-week low | Recorded on February 6 | $64.08 |
| Lower descending wedge boundary | Deeper downside reference | $59.10 |
Resistance Levels: Focus on $84.50 – $84.66 and All-Time High
On the topside, the first significant obstacle is aligned with the upper boundary of the descending wedge around $84.50. Just above this level sits the nine-day EMA at $84.66, forming a short-term barrier cluster.
A daily close above the nine-day EMA would help relieve near-term downside pressure and could open the way for XAG/USD to revisit the region surrounding the all-time high at $121.66, which was reached on January 29.
Downside Risks: Watching the 50-Day EMA and Recent Lows
If Silver fails to break and hold above the short-term resistance zone, the current recovery would remain fragile. In that scenario, risk would tilt back toward a retest of the 50-day EMA support at $79.91.
A daily close below the 50-day EMA would mark a deterioration in the technical outlook and shift the bias lower, exposing the eight-week low at $64.08, recorded on February 6. Below that, attention would turn to the lower boundary of the descending wedge pattern near $59.10.
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