Victoria Bazir
Silver prices attempted a modest recovery after testing support levels, but the bounce remains unconvincing as bearish indicators continue to dominate the technical picture. Despite stabilizing after recent losses, XAG/USD faces significant resistance overhead that could limit upside potential and keep sellers in control.
Silver Rebounds From Support But Lacks Conviction
XAG/USD silver made a reaction bounce after dropping into a support zone on shorter timeframes. The recovery followed intense selling pressure, yet the overall structure remains fragile and the trend hasn't shifted. Price has stabilized after touching lower levels but continues trading beneath overhead resistance, suggesting the bulls haven't taken control yet.
The chart reveals XAG/USD trading below the volume profile point of control around $81.41, marking a strong resistance zone that's keeping price capped. Bollinger Bands show a reaction from the lower band while volatility remains elevated, indicating uncertainty in the market. The RSI fluctuates between roughly 32 and 45, signaling a weak recovery rather than a genuine reversal. Meanwhile, the Parabolic SAR stays positioned above price, reinforcing ongoing downward pressure—conditions similar to when Silver slipped below key averages.
The recovery followed strong selling pressure, yet the overall structure remains weak and the trend has not changed.
Key Support and Resistance Levels for XAG/USD
Support levels for XAG/USD stand at $77.90, $74.05, $72.01 and $64.22, while resistance zones sit at $81.40, $83.75, $86.00 and $92.11. Volume delta remains indecisive, showing no dominant buyer presence after the decline. Similar price behavior appeared when Silver tested major support after a plunge, where stabilization occurred but confirmation was required to shift direction. The broader context also matches scenarios where Silver faces deeper pullback risk.
What This Means for Silver Traders
This development matters because silver remains highly sensitive to US dollar movement and interest rate expectations. Increased risk appetite could strengthen recovery attempts, while continued macro pressure would keep XAG/USD below resistance and maintain the current downtrend structure. Until price breaks above $81.40 with conviction, the path of least resistance appears to remain downward.
Victoria Bazir
