Silver (XAG/USD) attracted buyers during the Asian session on Thursday, reversing part of the previous day's losses that saw the metal drop to $70.85, its lowest level in over three weeks. In the latest trading, silver climbed above the $72.00 mark, signaling a modest recovery from recent declines [1].
Despite this rebound, technical indicators suggest that the upside potential for silver remains limited. The XAG/USD pair is trading below the 100-period Simple Moving Average (SMA) on the 4-hour chart and remains under the 38.2% Fibonacci retracement of the March-April rally, reinforcing a bearish near-term outlook. The 14-period Relative Strength Index (RSI) is around 37, indicating weak momentum, while the Moving Average Convergence Divergence (MACD) indicator stays below zero with a slightly negative histogram, both pointing to persistent downside momentum even as short-term bearish pressure shows signs of moderating [1].
Resistance levels are identified at $73.00 and $73.60, with further potential upside targets at the 38.2% Fibonacci retracement near $74.64, the 100-period SMA around $76.63, and the 23.6% retracement at about $77.85. A more distant resistance is noted at the recent Fibonacci anchor close to $83.04. On the downside, immediate support is seen at the 50.0% retracement at $72.04, with additional support at the 61.8% retracement near $69.45 and deeper levels at $65.75 and $61.05 if selling resumes [1].
No explicit market reactions or analyst opinions are provided in the article, but the technical setup suggests that while silver has staged a short-term recovery, the broader trend remains cautious with bearish risks prevailing [1].
CONCLUSION
Silver's recovery above $72.00 offers some relief after recent losses, but technical indicators highlight ongoing bearish momentum. Traders should watch key resistance and support levels, as the market remains vulnerable to further downside unless sustained buying emerges.