Silver Price Analysis: Gradual recovery underway as momentum turns constructive

NEW YORK (February 4) Silver price extended its recovery for the second straight day, up by 3.75% shrugging off broad US Dollar strength, following the release of solid US economic data. At the time of writing, XAG/USD trades at $88.20, after bouncing off daily lows of $83.28.

XAG/USD Price Forecast: Technical outlook

Silver’s technical picture remains neutral to bullish biased, but due to the parabolic downside move, a recovery from around $80.00 to record highs past $120.00, would take some time. Nevertheless, momentum seems to favor buyers as depicted by the Relative Strength Index (RSI) which despite remaining below the neutral level, shows bulls gathering steam.

If XAG/USD surpasses $90.00, the next key resistance level would be $95.00, followed by the $100.00 mark. On further strength Silver can reach the January 30 high at $118.47, ahead of the all-time high of $121.66.

On the flip side, if Silver dives below $85.00, the first support would be $84.00, followed by the February 4 low of $83.28. A breach of the latter will expose the 50-day SMA at $77.01.

FXStreet