Silver Forecast: XAG/USD oscillates between new highs and consolidation

Silver prices broke through the $94.76 mark this week, reaching a new all-time high. After this impressive jump, XAG/USD is now trading around $94.20, showing early signs of a consolidation move. The current silver forecast indicates that the precious metal has entered a critical technical phase where both opportunities and risks are competing.

All-Time High Reached – Technical Indicators Warn of Overbought Conditions

Technical analysis on the daily chart reveals an interesting picture: the silver price is moving within an ascending channel, emphasizing the ongoing upward momentum. The 14-day Relative Strength Index (RSI) is at 72.81, indicating an overbought condition. This is an important signal: RSI values above 70 traditionally suggest momentum saturation and may signal a correction or short-term consolidation.

The nine-day Exponential Moving Average (EMA) is below the current price with a steep upward slope and acts as immediate support. The 50-day EMA, also trending upward, confirms the medium-term bullish trend. This combination of multiple moving averages suggests an intact upward trend but also warns of a possible pause.

Bullish Continuation: Target Levels up to $97.00

If the silver forecast remains bullish, the next targets could be quickly reached. If the price stays above the short- and medium-term moving averages, a test of the upper channel boundary around $96.90 is expected. Beyond that, the psychological barrier of $97.00—a round number attractive to many market participants—comes into view. Breaking through these levels would further strengthen buying momentum.

As long as the silver price remains above the rising nine-day EMA at $88.59, the overall upward trend remains intact. Short-term profit-taking could lead to pullbacks, but a fundamental trend reversal is unlikely in this scenario.

Risk Zone: Where Silver Buyers Should Be Vigilant

Risks should not be overlooked. A moderate pullback could initially be halted at the lower channel boundary around $80.10, where a strong support level exists. A break below this zone could shift the risk toward a broader correction, with the 50-day EMA at $70.23 coming into focus.

Despite overbought conditions, the current silver forecast remains bullish as long as these support levels hold. Traders should use consolidation phases to review their positions and adjust stop-loss levels accordingly.