Saad Ullah
⬤ XAG/USD strengthened after a decisive bullish marubozu session reclaimed key moving averages, and follow-through buying kept price elevated in the next session. As Silver Breaks Key Downtrend, Now Targeting $86 and $92 Resistance Levels reported, the move suggests a potential momentum shift as buyers absorbed overhead supply and forced a reset in short-term positioning. Silver closed near $86.99, up about 2.80% on the day, printing a higher high and higher close compared to the prior session.
⬤ The daily chart shows the rebound occurring after a sharp early-February selloff from the $110-$115 area down into the mid-$70s, followed by consolidation and a push back above trend signals. The 21 EMA sits near $82.97 and the 50 EMA near $79.60 - both now below spot price, confirming the reclaim. The 200 EMA, near $58.40, remains far underneath, showing that the broader uptrend structure is still intact even after recent volatility. Price action is also breaking above a short descending line drawn across recent lower highs, suggesting sellers are losing control of the short-term rhythm.
⬤ Momentum conditions align with that recovery narrative. The MACD histogram has been rising toward the zero line, and the MACD line is approaching its signal line, indicating a bullish crossover is near. The chart reflects improving upside impulse after the moving-average reclaim, while the recent sequence of higher lows suggests dips are being bought rather than faded.
⬤ This setup matters because silver often reacts quickly when trend signals flip after a sharp correction. Maintaining closes above the 21 EMA and 50 EMA reinforces confidence in trend continuation, while a failure to hold those levels would imply the move was a short-lived squeeze inside a wider consolidation. As noted in Silver Eyes Breakout as Price Tests $72 Support Level, with XAG/USD back above key averages and momentum rebuilding, the next few daily closes will help define whether this evolves into a sustained advance or remains a volatile rebound phase.
Saad Ullah
