Key Momentum Signals
The Relative Strength Index (RSI) was near 33, below the 50 mark and close to oversold levels. Initial support sat near $67.00, with further supports at $63.00 and $60.00. On the upside, resistance was seen near $73.00 and around the 100-day SMA near $74.00. A daily close above that area could bring $80.00 into view, followed by resistance near $85.00. The technical analysis was produced with the help of an AI tool. We see silver struggling to gain traction, and this confirms the bearish signals we observed late last year. Looking back at 2025, the breakdown below the 100-day Simple Moving Average was a critical moment that shifted short-term momentum. As of today, the price remains capped below those key resistance levels of $73.00-$74.00, reinforcing the negative outlook.Macro Drivers And Trade Ideas
The current macroeconomic environment is adding pressure, with the latest US CPI data for February 2026 coming in hotter than expected at 3.4%. This has pushed the US Dollar Index (DXY) to a firm 105.5, making silver more expensive for foreign buyers. Consequently, expectations for Federal Reserve rate cuts are being pushed further out, which is a headwind for non-yielding assets. For the coming weeks, we believe buying put options with strike prices near the old support levels of $63.00 and $60.00 could be a prudent strategy. These levels were highlighted as potential targets during the 2025 downtrend. May 2026 expiry dates would provide enough time for this scenario to potentially unfold. Industrial demand, a key component for silver, also appears weak, providing another reason for caution. Recent data shows China’s industrial production grew slower than forecast in the first two months of 2026, and the latest manufacturing PMI registered at 49.8. A reading below 50 indicates contraction, suggesting that a significant source of silver demand is faltering. Given this backdrop, we should also consider strategies that benefit from range-bound price action or a potential sharp reversal. Selling out-of-the-money covered calls against any physical holdings could generate income while the price stagnates below resistance. Alternatively, for those anticipating an eventual rebound, purchasing long-dated, cheap call options, such as September 2026 $75 calls, offers a low-cost way to participate in a potential recovery later in the year. Create your live VT Markets account and start trading now.
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