Rebounded from the price, 100-hour SMA support... After testing $62, focus on oscillator signals

New Week’s Start Brings ‘Rebound’ Bullish Momentum in Silver Market

As the new week begins, silver(XAG/USD) has rebounded from last week’s all-time high of $64.65 after a correction and is now showing upward movement again. Trading near $62.50 per ounce in the Asian session, silver has risen approximately 1.25% compared to the previous day, regaining its short-term upward trend. Notably, clear demand has emerged around the 100-hour simple moving average(SMA), indicating that the medium- to short-term buying momentum remains active.

Divergent Signals from Technical Indicators

On the chart, oscillators are sending mixed messages. The oscillator on the 1-hour chart remains in the neutral zone, making it difficult to determine a clear short-term buy or sell advantage. Meanwhile, the daily RSI remains near overbought levels. This suggests that while further upside is not entirely blocked, the market is approaching a zone where resistance could become more substantial as prices move higher.

A rebound near the 100-hour SMA supports a short-term bullish outlook, but the oscillator’s neutral signals also call for caution in new entries. It is especially important to closely monitor the current momentum flow before engaging in aggressive buying.

Upside Resistance Levels: $63, $63.80, $64.65

The upper levels are gaining attention. The first key resistance is likely around $63.00. If the market can close above this level, the next target would be near $63.80.

Pushing further beyond the $64.00 round figure and gaining additional buying momentum could lead the market to seriously consider retesting the all-time high of $64.65. However, it is crucial to watch for changes in oscillator behavior during this process.

Downside Support Levels: $62, $61.45, $60.80

The lower defense lines are clearly defined in case of a correction. If prices fall below $62.00, meaningful support may appear around $61.45, near the 100-hour SMA. This area is viewed as the first retracement zone from a short-term buying perspective.

If this SMA level is decisively broken, prices could decline toward the round figure of $61.00, with the swing low of $60.80 from Friday serving as the next checkpoint. A break below $60.80 could lead to a deeper correction beyond a simple pause, increasing the risk of a more significant retracement.

Practical Trading Strategy

Currently, the silver market structurally maintains a bullish bias. The rebound from the 100-hour SMA and the recovery above $62 support this view. However, considering the overbought condition of the daily RSI and the concentration of short-term resistance levels, a more conservative approach would be to utilize retracements or pullback zones for scaled entries rather than chasing the market aggressively.

Waiting until oscillators show a clear directional signal from the neutral zone can help reduce unnecessary volatility risks.