Silver(XAG/USD) Technical Analysis: Resumes Uptrend with 100-Hour SMA Support… Breaks Above $62, a Level Noticed by Experts

A Strong Rebound at the Start of the Week… Overbought Warnings Also Ringing

The price of silver has been recovering after a sharp decline from the all-time high of (64.65 dollars) last week. After a correction on Friday, it regained strength during the Asian trading hours at the beginning of the new week, again trading above $62.50 per ounce. The daily increase of 1.25% continues the current trend, and market analysts interpret the clear demand signals near the 100-hour simple moving average(SMA) as positive.

However, there are also warning signs. The daily RSI is already quite close to the overbought zone, and experts generally agree that aggressive new entries by seasoned traders should be approached with caution in the next move.

Technical Outlook: Is This a Short-term Bullish Trend or a Sign of Correction?

XAG/USD shows a clear ‘buy-the-dip’ demand at the 100-hour SMA. The rebound from this point and the retaking of the upper round figure at $62.00 are seen as key signals supporting a short-term buying market.

On the other hand, oscillators on the 1-hour chart remain around neutral levels, indicating that there is no clear ‘strong buy’ or ‘strong sell’ dominance at the moment. This suggests that intra-day volatility could still expand in the short term.

When combining daily momentum and valuation assessments, the upward trend has not fully halted, but as prices move higher, resistance zones are expected to gradually become thicker.

Key Resistance and Support Levels: How Far Can It Go?

Upper Resistance Levels:

• $63.00: Likely to act as the first major resistance. If this level is broken on a closing basis, the next target would be around $63.80.
• $64.00: Breaking this round figure upward and gathering additional buying interest could make a reattempt at the all-time high of $64.65( a realistic scenario.

Lower Support Levels:

• $62.00: Currently an important defense line. Falling below this level would make the 100-hour SMA at $61.45 the first support zone.
• $61.00: Acts as a psychological support level as a round figure.
• $60.80: The swing low on Friday and the bottom of the previous correction. If this level breaks, it could lead to a deeper retracement beyond a simple correction.

Realistic Approaches for Seasoned Traders

Despite the structural bullish signals from the rebound at the 100-hour SMA and recovery above $62, experienced traders tend to favor a ‘scaled entry rather than chasing’) as a conservative strategy.

There are two reasons. First, the daily RSI is approaching overbought levels, indicating a risk of short-term correction. Second, the resistance levels($63, $63.80, $64) are clustered, making further upward movement more challenging.

Therefore, even if the current trend continues, it is considered more stable to approach with scaled entries during pullbacks or consolidations, as a long-term positioning strategy.

Conclusion

Silver maintains a short-term bullish bias technically, but overbought signals and increasing resistance suggest that ‘selective entries’ are necessary at this stage. As long as it stays above the 100-hour SMA, the structure remains bullish; however, a breakdown below $62.00 could trigger a larger correction, making risk management essential.