Silver Price Forecast: RSI recovers above 50, upside bias builds
LONDON (February 24) Silver (XAG/USD) regains traction on Tuesday after earlier intraday weakness, as lingering geopolitical and economic risks keep dip buyers active.
At the time of writing, XAG/USD trades near $87.80, rebounding sharply from the daily low of $84.96. However, a firmer US Dollar (USD) is capping further upside attempts.
The white metal has surged nearly 23% over the last four trading days, reaching its highest level in almost three weeks on Monday. The rebound suggests bulls are gradually regaining control following the sharp corrective pullback from the late-January record high near $121.66.
From a technical perspective, the daily chart shows a mildly bullish near-term bias. Price has reclaimed the rising 50-day Simple Moving Average (SMA) and remains comfortably above the 100-day SMA, which are clustered in the low-to-mid $80s and continue to reinforce the broader underlying uptrend.
The Relative Strength Index (RSI) has stabilized just above the 50 mark after recovering from mid-range levels, signaling improving momentum without yet entering overbought territory.
Meanwhile, the Average True Range (ATR) has eased from recent peaks, suggesting that the extreme volatility phase is fading and price action may transition into a steadier directional move rather than sharp swings.
On the downside, initial support emerges near the 38.2% Fibonacci retracement at $86.05, measured from the $64.08 low to the $121.66 high. A sustained break below this level could expose the 23.6% retracement at $77.64 as the next meaningful support zone.
On the upside, immediate resistance aligns with the 50% Fibonacci retracement at $92.85. A decisive close above this barrier would strengthen bullish conviction and open the door toward the 61.8% retracement at $99.65.
FXStreet
