Silver (XAG/USD) is having a tough time staying above the $48.00 mark, which is drawing in some sellers during the Asian trading session on Thursday. Still, the metal did manage to surpass its lowest point since September 25 on Tuesday and is now hovering just beneath the mid-$47.00 range, down 0.20% today.
Looking at the technical picture, the bounce off the 50-day exponential moving average (SMA) this week and the rally following that seem to favor the bulls for XAG/USD. But there’s a catch—the daily chart oscillator is beginning to show signs of negativity. This raises a bit of a red flag, suggesting that the recent dip from the all-time highs earlier this month might not be over just yet.
On the downside, the area between $47.00 and $46.95 appears to be holding steady for now. If it breaks below that, we might see XAG/USD dip under $46.00 and test the 50-day EMA support around $45.55. A significant drop below that could serve as a signal for bearish traders, pushing the price down toward the $44.45 range, then potentially to $44.00 and $45.00 as it heads to $43.55.
Conversely, if XAG/USD makes a positive move above $48.00, it might attract some sellers but will likely hit a solid resistance zone around $48.45 to $48.50. If buying momentum continues, it could open the door to a rise toward the $49.00 level. Clearing that could give the silver price a boost toward $49.45 before eyeing the psychological $50.00 mark.
