Silver(XAG/USD) Technical Analysis: Continuing the bullish trend supported by the 100-hour SMA, holding at $62.50

Signals That Expert Traders Should Watch

At the beginning of the week, the market showed a subtle recovery from the previous week’s all-time high of $64.65, partially rebounding from the sharp decline. It demonstrated clear buying demand near the 100-hour simple moving average(SMA). In the spot market, prices are moving around $62.50 per ounce, recording a daily increase of 1.25%. This is interpreted as a sign that the medium-term bullish structure remains solid, beyond a simple technical rebound.

Oscillator Signals and Momentum Analysis

The oscillators on the 1-hour chart currently remain at neutral levels, indicating a lack of clear bias from a short-term trading perspective. Meanwhile, the daily RSI remains close to overbought territory, which is noteworthy. This suggests that while further upside is not entirely blocked, caution is needed against reckless chasing of gains.

Overall, momentum and valuation signals imply that resistance levels may gradually strengthen as prices move upward. Particularly, overbought signals on the daily chart suggest increased short-term volatility.

Key Resistance Levels: 63.00 → 63.80 → 64.65 dollars

In the short term, $63.00 is likely to serve as the first barrier. If this level is broken on a closing basis rather than intraday, the next target would be around $63.80. If additional buying pressure enters here and the market breaks above the round figure of $64.00, the market will actively revisit the all-time high of $64.65, and discussions about a potential new high will intensify.

Support Levels: 61.45 → 61.00 → 60.80 dollars

In a correction scenario, a decline below $62.00 is expected. Currently, the 100-hour SMA is around $61.45, where a new “buy-the-dip(buy-the-dip)” demand could form.

If this key moving average is clearly broken, the next test could be at the round figure of $61.00. If prices fall further, the swing low from Friday at $60.80 will become the next testing point. This level, being the recent correction low, is a critical juncture to assess how resilient the medium-term bullish trend remains.

Trading Strategy: Divided Entry Is a Wise Choice

Overall, the technical setup for silver still shows a strong bullish bias supported by the 100-hour SMA and the recovery above $62. However, considering the overbought condition of the daily RSI and the concentration of resistance levels above, seasoned traders are advised to adopt a cautious approach. A divided entry strategy that leverages correction and pullback phases is considered a relatively conservative and stable approach. This method helps manage risks effectively amid short-term volatility.