- Silver drifts lower on Thursday and erodes a part of Wednesday’s gains to the all-time peak.
- The overbought RSI on the daily chart is seen as a key factor that prompts profit-taking.
- The bullish technical setup backs the case for the emergence of dip-buying at lower levels.
Silver (XAG/USD) attracts some sellers during the Asian session on Thursday and currently trades around the $65.75-$65.70 region, down over 1% for the day. The white metal, however, remains well within striking distance of the all-time peak touched the previous day, and the broader technical setup still seems tilted firmly in favor of bullish traders.
The overnight breakout through a horizontal barrier near the $64.00 mark was seen as a key trigger for the XAG/USD bulls and validates the near-term positive outlook. The said handle now coincides with the 100-hour Simple Moving Average (SMA) pivotal support, which, in turn, should act as a strong base for the commodity and as a key pivotal point for short-term traders.
The Relative Strength Index (RSI) prints 59.95, neutral-to-bullish on the 1-hour chart, though it is flashing overbought conditions on the daily chart. The Moving Average Convergence Divergence (MACD) histogram slipped below zero, suggesting the MACD line crossed beneath the Signal line, and momentum cooled. Nevertheless, the broader setup stays mildly constructive
Moreover, the upward slope of the 100-hour SMA suggests that any corrective slide is more likely to attract dip-buying. Holding above the rising SMA would preserve the upside tone for the XAG/USD, while a decisive break below that support would open a deeper pullback. A MACD return to positive territory, and an RSI hold above 50 would bolster the bullish outlook.
(The technical analysis of this story was written with the help of an AI tool)
Silver 1-hour chart
