Silver (XAG/USD) extended its rebound on Friday, adding to Thursday’s modest gains after retreating earlier this week to its lowest level in more than a week. The white metal is stabilizing around $42.35, with buyers stepping back in to defend key technical levels following a pullback from the 14-year high of $42.97.
Technical setup: $41.50 emerges as key support
On the 4-hour chart, the $41.50 zone—previous breakout territory—has established itself as an important support level. Repeated lower wicks indicate strong dip-buying interest, while price remains comfortably above the 21-period Simple Moving Average (SMA) at $42.06 and the 100-period SMA at $41.22. This positioning keeps the near-term outlook constructive.
A decisive break below $41.50 would expose deeper support near $40.50, while the upside remains capped by layered resistance. The next test lies at $42.50, followed by a potential retest of $42.97. A sustained breakout above that level could clear the path toward the $43.50 psychological handle, extending the broader bullish trend.
Momentum signals tilt bullish
Momentum indicators are turning supportive. The Relative Strength Index (RSI) has climbed to 57, pointing to growing bullish momentum while avoiding overbought conditions. At the same time, the MACD histogram is flipping positive, with a potential bullish crossover in development. Together, these signals suggest further upside potential as long as XAG/USD holds above the $41.50 floor.
