XAG/USD Gains 2.25% as Price Presses $91 Resistance
Recent data from Investing.com indicate that the XAG/USD is trading at an almost value of $90.28 and manages to gain some 2.25% of the day. The recovery is preceded by a fall to the $86 and $87 attacking zone, where the buyers acted decisively and turned intraday weakness. The response of the support area reflects that demand is still strong in regard to retracements.
In a more macro view of the Investig.com chart, it is clear that silver is still underperforming in the higher timeframes. The metal is in the up biases of 6.74% in a week, 68.99% in three months, and 133.84% in six months, both supporting the continuity of the upside construction. Granted that the one-month performance indicates a certain decline, the bigger trend is positive, which implies that recent weak performance was remedial to an expansion phase.
On the technical side, the price is now nearing the most recent sessions that have limited upside in the price, with the help of the price band of $90-$91. A strong breakout above $91 would clear the way to new highs, and remaining above the area between the $88.50 and $89.00 areas would preserve the near-term formations.
Trading Economics Shows Silver At $90.41 Per Ounce
At present, silver is trading at an approximate $90.41 per ounce, which is almost 2.43% higher on the session as per Trading Economics. The fact that the recovery has reached above the psychological $90 handle was a boost to regenerate the purchasing interest previously experienced due to the recent volatility.
On the Trading Economics chart, silver is still in a strong long-term upward trend. During the last year, the price has gained momentum in the form of a bullish trend since it has moved out of the $30–$35 zone to reach almost a high of $115–$120. Even following the rectification of such highs, the metal is still trading a lot higher than it previously broke out, which is a pointer that the bigger structure is not broken.
On the technical side, the market seems to be establishing a higher bottom between $80 and $95, all of which is a sign of stability after a huge growth period. A clear breakout beyond the area of the above-mentioned resistance between the $95 and the $100 area would probably cause another wave of upside and pave the way for another attempt to test the earlier highs. Oppositely, sustaining support at or above $85 is keeping the bullish set-up intact.
SLV Stabilizes Near $80 As Momentum Indicators Turn Positive
On the other hand, the iShares Silver Trust (SLV) is trading close to the value of $80.45 at press time, after reaching its daily high of approximately $80.57. Price movement indicates stabilization after the intense pullback experienced in February, as the purchasers were able to hold the middle of the $70s region and slowly force the ETF into an upward trend.
Technically, the TradingView chart shows that momentum indicators are becoming positive. The MACD (12, 26, 9) histogram has also returned to the positive side, and the MACD line has tried to break out of the signal line—the first sign that the pressure on the downside is subsiding.
Nonetheless, this would only be confirmed by an extended break beyond the $85-$90 resistance band.
However, the Chaikin Money Flow (CMF 20) is a little below zero at -0.01, which implies that capital flows are not back in full force. As long as SLV stays above the lower levels of -75 and returns to above -90, the overall upswing might restart. The lack of support would take the ETF up to greater levels of retraction.
