XAG/USD Daily Analysis Shows Recovery While $77 Caps Wider Upside

XAG/USD traded around $68.59 on the daily chart, placing the price slightly above its 200-day moving average after a volatile decline.

The rebound has produced an early reversal signal, but silver still trades below several major resistance levels. Buyers now face a test near $70, while the broader structure remains limited below the $75 to $77 region.

Silver Rebounds From Fibonacci Support

Kamile Uray identified $66 as the 0.786 Fibonacci retracement of silver’s previous upward wave. Price reacted in that region and returned toward $68.50, showing renewed demand near a level that previously attracted buyers.

Her chart places immediate resistance near $70.78. A move through that area could extend the rebound, although the larger test sits around $77.10.

Silver has repeatedly struggled beneath that level during recent months. Therefore, a daily close above $77 would provide clearer evidence that the current move is more than a short-lived reaction to the decline.

If the price fails to build above the resistance, $66 returns as the first support. A deeper pullback would shift attention toward $60.70, another area where buyers previously entered. Hammer

Hammer Candle Forms Near 200-Day Average

Silver retraced the former breakout trendline and formed a hammer candlestick on the GoldenEye daily chart after silver tested the former breakout trendline. The formation was a price drop toward the support, then picking up off the bottom of the session.

The price was driven lower by sellers who long held lower wicks, but the price rallied back for buyers near the daily closing. The next candle added just a small increment, but the price failed to break above the high level of the hammer.

In addition, Silver was trading slightly above the 200-day exponential moving average line on the analyst chart around $68.16, according to the analyst chart. Above that line is a good sign of recovery, while below it is a sign of weakness in the immediate structure.

Meanwhile, the 100-day and 50-day averages stood near $75.07 and $75.91. Both are above the current price and are in a tight resistance area in front of $77.

Buyers Face Several Overhead Barriers

Even though the highs have been punctuated by a sharp peak earlier this year, Silver’s wider daily chart still features lower highs. The price is also below falling resistance, having seen several recovery attempts capped off.

The volume profile indicates that there was significant trading volume between $72 and $78. That area could hinder progress as traders who have moved in earlier will react to the return of prices.

Breaking above $70 would signal the first positive move. Silver would have to close the moving-average cross around $75 once more before making a run for $77.

From there, Uray’s chart clearly shows the next major confirmation is at $89. As long as it remains above $77 and then rises above $89, the outlook for recovery is improved.

Silver has not yet reached a trend reversal, as long as it is not broken from the support levels. The daily close in and around the 200-day moving average will be used to gauge whether buyers can press on to $70 or not.