Silver (XAG/USD) stayed within a multi-day range in Friday’s Asian session. It traded just above the mid-$89.00s, up nearly 1.0% on the day.
Price has remained above the rising 100-period EMA on the 4-hour chart, near $84.40. This keeps the short-term uptrend intact despite the recent sideways move.
Momentum Signals Still Favor Buyers
The RSI has eased towards 58 but remains above 50. This points to continued buying pressure even as momentum cools.
The MACD (12, 26, 9) is slightly negative but moving closer to the zero line. This suggests weakening downside momentum after the pullback from $91.
Support levels are seen at $88.20, then $87.50, and then $84.00–84.40 around the 100-period EMA near $84.40. A move below $87.50 could shift bias lower towards $84.00–84.40.
Resistance is at $90.00 and then the swing high near $91.10. A 4-hour close above $91.10 could open a move towards $93.00.
Broader Outlook And Trading Implications
The technical analysis was produced with support from an AI tool.
We are seeing silver consolidate in a tight range, but the technical picture favors a move higher. The price holding above the mid-$89.00s and staying above key moving averages suggests underlying strength. This makes any small dips look more like buying opportunities than the start of a reversal.
This bullish technical outlook is supported by strong fundamental demand, especially from the renewable energy sector. We saw last year, in 2025, that the Global Solar Council reported a record 22% increase in photovoltaic installations, which heavily rely on silver. This persistent industrial consumption provides a solid price floor for the metal.
Furthermore, last week’s slightly cooler-than-expected US inflation print is reinforcing our view that the Federal Reserve will pause its rate-hiking cycle. This expectation of stable interest rates puts a cap on the US Dollar’s strength. A steady or weaker dollar is historically supportive for dollar-denominated assets like silver.
For derivatives traders, this suggests that buying call options or bull call spreads could be a viable strategy in the coming weeks. We should watch for any corrective slides towards the $88.20 support level as a potential entry point. A break above the recent high of $91.10 would be the key trigger for a sustained move towards the $93.00 region.
On the other hand, we must manage risk by watching the $87.50 level closely. A sustained break below this point would signal that the bullish momentum is fading and might warrant considering protective put options. This would open the door for a deeper pullback toward the major support zone around $84.40.
