Price rebounds, oscillators send mixed signals at the $62 resistance... If the upward trend continues, a re-challenge at $64.65.

Technical Indicator Signal Analysis: Oscillator Neutral with RSI Overheat Warning

XAG/USD confirmed meaningful support near the 100-hour simple moving average(SMA) at the start of the new week. Based on this level, a strong rebound movement was observed, and it is currently trading in the mid-62.50s per ounce. On a daily basis, it has risen approximately 1.25%, successfully maintaining a structural bullish trend even after the correction following the all-time high of $64.65 recorded last week.

However, technical indicator signals are showing mixed messages. The oscillators on the 1-hour chart remain in the neutral zone, indicating that from an intraday trading perspective, there is no strong ‘clear buy advantage’ signal. Meanwhile, the daily RSI remains near overbought levels, suggesting that caution is warranted when considering new buy entries.

Post-Last Week Correction: Buying Demand Resumes… The $62 Round Level is Key

Although prices declined somewhat during Friday’s correction, buying forces re-entered actively during the Asian trading hours at the start of the new week. The fact that current prices are trading above $62.00 suggests that the short-term bullish bias remains valid. The rebound near the 100-hour SMA also supports this interpretation.

However, the mixed signals from oscillators and RSI indicate that caution is needed regarding the future direction. A more prudent strategy might involve using the correction phase for scaled-in trading rather than aggressive chasing buys.

Resistance Levels: $63.00 → $63.80 → $64.65 Scenario

The first level to watch in the short-term bullish scenario is $63.00. If this level is closed above, the next target becomes around $63.80. As buying demand continues to build and the price upwardly breaks the $64.00 round figure, the market could start serious discussions about retesting the all-time high of $64.65.

Support Levels: $61.45 → $61.00 → $60.80 Defense Line

If the correction deepens, a decline below $62.00 is expected. In this case, a significant initial support is likely to form around $61.45, near the 100-hour SMA. If this level holds, the long-term upward trend remains intact.

However, if $61.45 is ‘clearly’ broken, the situation changes. After falling below the $61.00 round figure, the price could drop to the swing low of $60.80 from Friday. This $60.80 level is the low point of the recent correction and a critical juncture for assessing the robustness of the medium-term bullish trend. If this level is breached, there is a higher risk of a deeper correction beyond a simple retracement.

Overall Assessment: Maintain Bullish Structure but Watch for Overheated Indicators

The price remains structurally strongly biased toward buying. The rebound from the 100-hour SMA and recovery above $62 are evidence of this. However, considering the daily RSI overbought condition and the concentration of short-term resistance levels, chasing new buys at this point appears risky.

Oscillator signals also remain neutral, making it difficult to expect clear additional upward momentum. Therefore, existing positions should be maintained, but new entries might be more conservative and rational if they utilize the correction zones—particularly around $61.45 or near $62.00—where pullbacks could be exploited.