Silver (XAG/USD) gains some positive traction during the Asian session on Friday and climbs back above the $85.00 mark in the last hour. The white metal, for now, seems to have snapped a two-day losing streak, though it remains on track to end the week on a flattish note.
From a technical perspective, the XAG/USD holds under the descending 200-period Simple Moving Average (SMA) on the 4-hour chart. This keeps sellers in control despite the Relative Strength Index (RSI) recovering toward the neutral 48 area, which suggests only modest downside momentum. Moreover, the Moving Average Convergence Divergence (MACD) indicator stays below the signal line and under the zero mark, with a negative histogram that reinforces the view of prevailing bearish pressure rather than an established base.
However, it will still be prudent to wait for a convincing break and acceptance below the longstanding rising support trend line before placing aggressive bearish bets around the XAG/USD. A failure would invite a deeper pullback toward $82.00, followed by $80.00 as the next significant level.
On the upside, initial resistance emerges at the 200-period SMA near $85.70, and a sustained break above this area would open the way toward last week’s highs around $87.00 and then $88.50. As long as XAG/USD trades below $85.70, rallies are vulnerable to selling pressure, while a recovery above that barrier would be needed to neutralize the current bearish tone.
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