Silver Consolidates Below Peak, Bulls Maintain Edge

Key Moments

Price Action and Market Context

Silver (XAG/USD) begins the new week trading quietly, fluctuating between modest gains and small losses near the $69.00 area during the Asian session on Monday. Despite the muted tone, the metal is still trading close to the recent two-month peak around the $70.00 psychological level that was reached on Friday, suggesting that the broader upward bias is intact.

The recent move higher follows a decisive break last week above a key horizontal resistance zone at $66.65-$66.70, which also coincided with the 38.2% Fibonacci retracement of the decline from May to July. This breakout has shifted the short-term structure in favor of buyers.

Technical Structure and Momentum Indicators

From a technical standpoint, XAG/USD continues to trade above the 200-period Simple Moving Average (SMA) on the 4-hour chart. This positioning, combined with constructive momentum signals, continues to support the bullish case.

The Moving Average Convergence Divergence (MACD) indicator is marginally in positive territory, implying that the prevailing upward trend remains active, although its intensity appears to be moderating. At the same time, the Relative Strength Index (RSI) stands near 66, pointing to solid buying interest but also indicating that the market is edging toward overbought conditions, which could temper the speed of further gains.

Key Levels to Watch

Market participants are closely monitoring the next major resistance area at the 50.0% Fibonacci retracement, located near $71.95. A sustained break above this level would help confirm the constructive technical outlook and open the path toward higher retracement levels.

On the upside, after the 50.0% retracement at $71.95, subsequent resistance is identified at the 61.8% Fibonacci level at $76.08. Above that, the 78.6% retracement at $81.97 and the cycle high at $89.47 are seen as additional upside reference points.

On the downside, initial support lies at the reclaimed 38.2% Fibonacci retracement at $67.81. Below this, the 23.6% retracement at $62.70 comes into view, followed by the 200-period SMA at $60.93. A more pronounced decline would bring attention to the structural support zone anchored near $54.43.

Key Moments

Price Action and Market Context

Silver (XAG/USD) begins the new week trading quietly, fluctuating between modest gains and small losses near the $69.00 area during the Asian session on Monday. Despite the muted tone, the metal is still trading close to the recent two-month peak around the $70.00 psychological level that was reached on Friday, suggesting that the broader upward bias is intact.

The recent move higher follows a decisive break last week above a key horizontal resistance zone at $66.65-$66.70, which also coincided with the 38.2% Fibonacci retracement of the decline from May to July. This breakout has shifted the short-term structure in favor of buyers.

Technical Structure and Momentum Indicators

From a technical standpoint, XAG/USD continues to trade above the 200-period Simple Moving Average (SMA) on the 4-hour chart. This positioning, combined with constructive momentum signals, continues to support the bullish case.

The Moving Average Convergence Divergence (MACD) indicator is marginally in positive territory, implying that the prevailing upward trend remains active, although its intensity appears to be moderating. At the same time, the Relative Strength Index (RSI) stands near 66, pointing to solid buying interest but also indicating that the market is edging toward overbought conditions, which could temper the speed of further gains.

Key Levels to Watch

Market participants are closely monitoring the next major resistance area at the 50.0% Fibonacci retracement, located near $71.95. A sustained break above this level would help confirm the constructive technical outlook and open the path toward higher retracement levels.

On the upside, after the 50.0% retracement at $71.95, subsequent resistance is identified at the 61.8% Fibonacci level at $76.08. Above that, the 78.6% retracement at $81.97 and the cycle high at $89.47 are seen as additional upside reference points.

On the downside, initial support lies at the reclaimed 38.2% Fibonacci retracement at $67.81. Below this, the 23.6% retracement at $62.70 comes into view, followed by the 200-period SMA at $60.93. A more pronounced decline would bring attention to the structural support zone anchored near $54.43.