Silver (XAG/USD) faces downside concerns but is supported by the 100-hour moving average... The key will be whether it can hold at $62

Resuming Buying at a New Stage After Recent Weakness

Following last week’s surge to a historic high of $64.65, XAG/USD experienced some correction pressure on Friday but shifted back to a buying trend at the start of the new week. Currently, it is trading in the mid-$62 range, approximately $62.50, recording a daily increase of 1.25%.

This is interpreted not as a simple rebound but as deliberate re-entry into buying at technical support levels. Clear buying demand was confirmed near the 100-hour simple moving average (SMA), and the price reclaiming the $62.00 round figure suggests that the upward momentum has not been completely broken.

Technical Indicators Show “Warning Signs” and “Bullish Signals” Coexisting

Looking at the chart, conflicting signals are observed. The 1-hour oscillators hover around neutral, indicating an intra-day environment where the dominant buy/sell direction is not yet clear. However, the daily RSI remains near overbought levels, suggesting caution in aggressively entering new buy positions at the current price level.

Support near the 100-hour SMA supports a short-term bullish scenario, but as the price moves higher, resistance levels become increasingly thick, which must also be considered.

Key Price Levels to Watch: The Battle Between Upper and Lower Supports

Upper Resistance Levels:

• $63.00: The nearest resistance; a close above this level would set the next target
• $63.80: The second resistance after breaking above $63.00
• $64.65: The ultimate target for a new attempt at the all-time high

If the price rises further to the round figure of $64.00, the market is likely to seriously discuss a renewed attempt at the $64.65 record high.

Lower Support Levels:

• $61.45: Current position of the 100-hour SMA, serving as the first line of defense for short-term buyers
• $61.00: Next check point if $61.45 clearly breaks down
• $60.80: Friday’s swing low and the bottom of the recent correction, a key turning point to gauge the robustness of the medium-term upward trend

If the price falls below $60.80, it could lead to a deeper correction rather than just a pause.

Strategy of Expert Traders: Smart Use of Corrections

Overall, silver prices maintain a structural bullish bias through the rebound of the 100-hour moving average and reclaiming $62. However, considering the overbought daily RSI and the concentration of resistance levels above, chasing with FOMO at current levels is less advisable. Instead, a divided buying strategy during pullbacks and corrections is relatively more conservative and efficient.

As the bullish trend appears to be sustained, it is wise not to be greedy and to wait for the right timing, which is key to maximizing long-term profits.