What Happened
Silver (XAG/USD) posted a remarkable gain of over 7% on Monday before consolidating on Tuesday. At the time of writing, the metal trades at $86.58, up 0.69% on the day, after bouncing sharply off a daily low of $83.05. The two-day move has put Silver firmly back in focus for momentum traders.
Key Levels
- Support 1: $83.05 — Tuesday’s intraday low and first line of defence for bulls
- Support 2: $80.00 — round-number psychological support and prior consolidation zone
- Resistance 1: $88.00 — near-term ceiling based on recent price structure
- Resistance 2: $90.00 — major psychological target bulls are now eyeing
Technical Picture
The sharp rally has pushed Silver into short-term overbought territory, though strong momentum can keep overbought conditions sustained in trending markets. The price is trading well above short-term moving averages, confirming the bullish trend. RSI is elevated, suggesting a brief consolidation or pullback is possible before any continuation higher.
What Traders Are Watching
The key trigger levels to watch are simple: a clean break and daily close above $88.00 would signal bulls are in full control and open the door to a run at $90.00. On the downside, a break below $83.05 would suggest Monday’s rally was a spike rather than a trend change, with $80.00 the next major support to watch.
Bias
Bullish — The magnitude of Monday’s 7% move signals strong buyer conviction. As long as price holds above $83.05, the path of least resistance remains higher toward $90.00.
Note: Silver (XAG/USD) is not a core ASX market but is widely traded by Australian retail traders via CFDs and ETFs.