Key Moments
- Silver (XAG/USD) extended its pullback for a second straight session, slipping below the mid-$81.00 area after reaching a more than one-month high near $89.35-$89.40 earlier in the week.
- An intraday move under the 38.2% Fibonacci retracement of the recent rally from below $71.00 strengthened the short-term bearish outlook, with RSI softening toward 40 and MACD turning more negative.
- Despite the correction, XAG/USD remained above the 50% retracement at $80.11 and the 100-period SMA around $77.83, levels that are viewed as key supports for the broader uptrend.
Technical Overview: Bearish Momentum Builds
Silver (XAG/USD) came under renewed selling pressure on Friday, extending this week’s retreat from a more than one-month high in the $89.35-$89.40 zone reached earlier in the week. The metal weakened below the mid-$81.00s during Asian trading and stayed close to the week’s low, signaling sustained downside interest.
From a technical standpoint, an intraday break below the 38.2% Fibonacci retracement of the latest advance from levels under $71.00 has reinforced the bearish tilt in the near term. Momentum indicators are softening, with the Relative Strength Index moving toward the neutral 40 area and the Moving Average Convergence Divergence gauge turning increasingly negative. These developments point to waning buying pressure over the short run.
Key Support and Resistance Levels
Even with the recent slide, XAG/USD continued to trade above the 50% retracement and the 100-period Simple Moving Average. This combination suggests that, on a broader horizon, the prevailing upward trend is still intact.
| Level | Price | Comment |
|---|---|---|
| Immediate support – 50% Fibonacci | $80.11 | First key downside level where buyers may re-emerge |
| Support zone – 61.8% Fibonacci | $77.95 | Forms part of a structural band of support |
| Support zone – 100-period SMA | $77.83 | Aligns with 61.8% retracement; a break could open the way to deeper losses |
| Initial resistance – 38.2% Fibonacci | $82.27 | First upside barrier after the intraday breakdown |
| Next resistance – 23.6% Fibonacci | $84.94 | Clearing this level would refocus attention on recent highs |
| Cycle high | $89.26 | Key topside objective if resistance levels are overcome |
On the downside, any further weakening is expected to encounter initial support near $80.11, corresponding to the 50% retracement of the recent upswing. Below this, attention turns to a more substantial support band created by the 61.8% retracement at $77.95 and the 100-period SMA at $77.83. A clear break through this area would be seen as a signal that sellers are gaining control and could trigger a more pronounced decline.
On the upside, the first resistance level is now the 38.2% Fibonacci retracement at $82.27, which has flipped to a potential barrier after the intraday breach. Above that, the 23.6% level at $84.94 is the next hurdle. A move through this region would bring the cycle high at $89.26 back into focus.
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