Silver (XAG/USD) held inside a multi-day range during Friday’s Asian session. It traded just above the mid-$89.00s, up nearly 1.0% on the day.
Price is still above the rising 100-period EMA on the 4-hour chart, near $84.40. This keeps the short-term uptrend in place, even with the recent sideways action.
Momentum Signals Still Favor Buyers
The RSI has slipped toward 58 but stays above 50. This suggests buyers still have the edge, even as momentum cools.
The MACD (12, 26, 9) is slightly negative but is moving back toward the zero line. This points to fading downside momentum after the pullback from $91.
Support is at $88.20, then $87.50, and then $84.00–84.40, which lines up with the 100-period EMA near $84.40. A drop below $87.50 could shift the bias lower toward $84.00–84.40.
Resistance sits at $90.00, followed by the swing high near $91.10. A 4-hour close above $91.10 could set up a move toward $93.00.
Broader Outlook And Trading Implications
This technical analysis was produced with support from an AI tool.
Silver is consolidating in a tight range, but the chart still leans bullish. Holding above the mid-$89.00s and staying above key moving averages suggests underlying strength. That makes small dips look more like buy-the-dip setups than the start of a reversal.
This bullish view also has fundamental support, led by demand from the renewable energy sector. In 2025, the Global Solar Council reported a record 22% rise in photovoltaic installations, which use large amounts of silver. Ongoing industrial demand can help create a solid floor under prices.
In addition, last week’s slightly cooler-than-expected US inflation data supports the view that the Federal Reserve may pause rate hikes. Expectations for steadier rates can limit US Dollar strength. A stable or weaker dollar often supports dollar-priced assets like silver.
For derivatives traders, buying call options or using bull call spreads could be worth considering in the weeks ahead. A pullback toward the $88.20 support area may offer a potential entry. A break above $91.10 would be the key trigger for a stronger move toward $93.00.
Risk management remains important around $87.50. A sustained break below this level would signal that bullish momentum is weakening and could justify considering protective put options. That would also increase the chance of a deeper pullback toward the major support zone near $84.40.
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