Silver Tests $57.60 Support as RSI Approaches Oversold Territory

Silver (XAG/USD) traded at $57.14 on Monday, down 0.9% on the day, while testing the $57.60 support level for the second time this week. The Relative Strength Index (RSI) stood at 31.14, close to levels that technical analysts commonly associate with oversold conditions.

Technical picture

1. Price remains below major moving averages and the four-hour Ichimoku Cloud, suggesting a bearish technical structure.
2. SuperTrend resistance is located near $60.62.
3. Average True Range (ATR) stands at 0.98 (1.68%), indicating elevated price volatility.
4. Trading volume has eased during the latest decline, which may suggest weakening selling momentum, although buying interest has yet to strengthen.

Potential technical scenarios

Some technical analysts view a confirmed close below $57.60 as increasing attention on the next support area around $55.75.

If the support level holds, technical analysts may look for signs of a potential double-bottom pattern, with attention shifting toward the $59.88–$60.62 resistance zone, which includes the 38.2% Fibonacci retracement and the SuperTrend level.

The $58.10–$59.30 range remains an area where price may continue to fluctuate without establishing a clear directional trend.

Market focus

An RSI near 30 is commonly interpreted as indicating oversold conditions, although it does not reliably predict price reversals on its own. As long as silver remains below key moving averages, broader trend signals continue to point to downward pressure.

Market participants are likely to monitor whether price breaks below support or regains resistance, as confirmation is commonly used in technical analysis to reduce the risk of false signals.

This article is technical market commentary and does not constitute investment advice.

Source: Investing.com market data.