After touching the value of $61, it is in a correction phase... If it stays above $59, the upward momentum remains valid.

Technical Fatigue After Sharp Rise, But the Uptrend Remains Strong

International silver spot(XAG/USD) continues its upward journey from last week, reaching around $61. Although silver prices are experiencing slight fluctuations after the Asian market open, market sentiment remains clearly bullish. The current rally, which started from a low of around $45 in mid-October, has significant momentum, and interim corrections are seen as factors that reinforce the trend’s sustainability.

Short-term technical indicators are signaling overbought conditions. The RSI on the 4-hour and daily charts is in the overbought zone, suggesting limited expectations for further immediate gains at current price levels. However, most investors interpret this not as a warning of trend reversal but as a temporary ‘period adjustment’ following rapid gains.

Technical Significance of Breaking $58.85… New Impulse Wave on Track

The key movement is the upward breakout of the resistance zone at $58.80–$58.85. This level has served as a ‘monthly resistance line’ that has withstood multiple sell-offs over the past month. Breaking through this zone indicates more than a simple technical rebound; it signifies entry into a new impulse wave(New Impulse Wave).

Technically, surpassing this level suggests that a medium-term upward trend has been confirmed. The $58.85 level has now shifted from a ‘resistance’ to a ‘support’ level and is expected to serve as a strong foundation during future corrections.

Investment Positioning: Buying Opportunities at $59–$60

Currently, traders are focused on “where to re-enter” the market.

Primary support level: The $60.30–$60.20 range is the first line of defense. If this zone breaks, the psychological benchmark of $60.00 will likely become the key buy point.

Buying strategy: Many market participants view a decline toward $60 as a ‘healthy pullback’ and are preparing to buy in stages. Notably, the $59 level is an area where technical regression lines and moving averages converge, making it a likely re-entry point for major institutional investors.

Even in the worst-case scenario of a breakdown below $60, the $58.80–$58.85 zone is expected to act as a strong final support(S/R Flip). This zone remains the last criterion for confirming the validity of the medium-term upward trend.

Bullish Scenario: Entry into the Second Leg if Stabilized Above $61

Positive outlook: If silver prices consolidate above $61, the market is likely to interpret this as the start of a ‘second leg(Second Leg)’ of the rally, initiating a search for new highs.

Conclusion: As long as prices do not fall below $58.80, the fundamental strategy remains ‘buy the dip(Buy the dip)’. Maintaining support above $59 suggests that the upward momentum is still intact.