Silver (XAG/USD) slipped after four straight days of gains, trading near $88.20 per troy ounce in early European trading on Tuesday. On the daily chart, the 14-day Relative Strength Index (RSI) was 54, staying above the midpoint.
Price held above both the nine-day Exponential Moving Average (EMA) and the 50-day EMA. The 50-day EMA was rising, and the nine-day EMA may provide support during pullbacks.
Trend And Momentum Outlook
Both EMAs were trending higher, with the nine-day EMA above the 50-day EMA. This setup could support a push toward the record high of $121.66, set on 29 January.
Key support levels are the nine-day EMA at $83.03 and the 50-day EMA at $80.15. If price breaks below both, it could open the door to the two-month low of $64.08, posted on 6 February.
The technical analysis for this story was produced with help from an AI tool.
With silver holding near $88.20, the chart setup still points to a mild bullish bias. Price remains above key moving averages, which suggests the uptrend still has support. For traders, this can mean pullbacks may be treated as potential buying opportunities, not a clear trend reversal.
Options And Risk Management
With EMAs sloping upward, traders may look at strategies that benefit from a move toward the recent record high of $121.66. One approach is buying call options with strike prices around $95 or $100 to gain leveraged exposure to upside momentum. This view is also supported by the latest Global Solar Council report, which forecasts a 15% year-over-year rise in silver demand for photovoltaic manufacturing in 2026.
Another approach, for those who expect support to hold, is selling cash-secured puts below the market. For example, selling puts with a strike price near the 50-day EMA (around $80) lets traders collect premium if the market holds above that level. A similar pattern appeared in Q3 2025, when silver held the $75 area before industrial demand helped drive the next rally.
The broader backdrop also leans supportive. The latest CPI data came in at 3.5%, keeping inflation concerns in focus and making silver, as a hard asset, more attractive as a hedge. Markets are also pricing in a 60% chance of a Federal Reserve rate cut by June, which could weaken the US Dollar and add support for silver.
Even so, risk control matters. Watch the support levels at $83.03 and $80.15 closely. A clear break below the 50-day EMA would signal a meaningful shift in momentum and weaken the bullish case. If that happens, buying put options or taking short futures positions may fit better, with a potential move back toward the $64.08 low from earlier this month.
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