Silver (XAGUSD) Price Forecast: Bullish Reversal Reclaims 50-Day Average

Author: Bruce Powers

Published: February 09, 2026

Overview

The silver market has recently shown signs of recovery, with a confirmed bullish reversal that has reclaimed the 50-day moving average. This development suggests potential for further upward movement, although traders should remain cautious due to the presence of resistance levels and recent selling pressure.

Key Developments

• Silver confirmed a bullish reversal on Monday, breaking above the previous high of $83.78.
• The 50-day moving average, currently at $78.11, has been reclaimed, indicating a bullish recovery.
• The day's low of $78.51 successfully tested the 50-day average as support, reinforcing bullish sentiment.

Technical Analysis

The recent price action indicates a bounce off the top of a rising trend channel, which previously acted as resistance. This transition to support is a positive sign for silver's price trajectory. However, further confirmation is needed to establish a higher swing low following last week’s retracement low of $64.06, which marked a significant decline of 47.4% from the January peak of $121.67.

Resistance and Support Levels

For the bullish trend to continue, a daily close above the 50-day average is essential. Key resistance levels to watch include:

• Near-term resistance at $92.20 (previous lower swing low).
• 20-day average at $93.15, which was broken during the recent retracement.
• 50% retracement level at $96.49 and 61.8% Fibonacci retracement at $102.44 as potential higher targets.

Market Outlook

Given the strong selling pressure observed during the recent decline, it is likely that the market will retest support levels near last week’s low. Traders should be vigilant for signs of resistance as the price approaches key targets, which could lead to another decline.

Conclusion

While the silver market shows signs of recovery with a bullish reversal and the reclaiming of the 50-day average, traders should prepare for potential volatility and further testing of support levels. Monitoring resistance zones will be crucial for determining the next steps in trading strategies.

About the Author

Bruce Powers is a seasoned finance professional with over 20 years of experience in financial markets. He holds an MBA and is a CMT® charter holder, having served as head of trading strategy at hedge funds and as a corporate advisor for trading firms.