Silver prices rose 0.47% on Tuesday but still remain below an eight-year high reached on Monday at $32.51. Currently, the XAG/USD is trading at $31.96 after hitting a low of $31.80. Despite this, the precious metal continues to show strong upward momentum, with technical indicators suggesting further gains may be possible despite overbought conditions.
The grey metal’s technical outlook remains positive, with the RSI indicating an overbought situation. However, the strength of the upward trend and the speed at which it is moving suggest that the RSI may not reach truly overbought levels in strong trending conditions. Typically, in a strong uptrend, the RSI is considered overbought at 80.00.
If the XAG/USD is able to surpass the $32.51 resistance level, further upside potential is likely, with the next resistance seen at $33.00. Breaking through this level could open the way for a retest of the October 2012 high of $35.40. On the other hand, if Silver drops below the May 20 daily low of $30.95, it could signal further losses. Support levels are seen at the April 12 high of $29.79 and the psychological level of $28.00.
In terms of price action, the daily chart shows a bullish bias for Silver, with the price trading above key support levels. The recent highs reached by Silver suggest that the metal remains in a strong uptrend, and further gains may be possible in the near future. Traders should keep a close eye on key resistance and support levels to gauge the potential direction of Silver’s price movements.
Overall, Silver’s price action remains positive, with the precious metal showing strong upward momentum despite overbought conditions. Traders should monitor key resistance levels at $32.51, $33.00, and $35.40, as well as support levels at $30.95, $29.79, and $28.00. With technical indicators pointing towards further gains, Silver could continue its upward trajectory in the coming days.
