Silver(XAG/USD) breaks below $62... Strengthening technical bearish signals, what are the conditions for a bullish reversal?

On Tuesday, in the Asian market, silver experienced a deepening correction near an all-time high, falling into the mid-$62 range. During the trading day, the decline exceeded 2.5%, breaking below the key support level of the 100-hour simple moving average(100-hour SMA) at $62.50. As the 1-hour indicator strengthened its negative momentum, the technical basis for further decline became clearer.

Breakdown of the $62.50 support level… Exposure of a gradual downside path

Silver rose to a record high the previous day, but profit-taking at the peak, typical of such highs, led to a quick retracement of gains. Notably, the recent sharp decline saw a technical breach of the critical $62.50 level of the 100-hour SMA. This zone had served as a ‘pivot support’ that sustained the short-term upward trend, and breaking it provided justification for additional downside.

Looking at the 1-hour chart oscillators gaining downward momentum, if selling pressure resumes, the bearish trend could intensify significantly. In other words, further selling could lead to increased price declines.

Four downside levels to watch if not blocked

Each time a support level is broken, the next level becomes a new market benchmark, making the technical downside path relatively clear.

• First resistance: $62.00(round figure, psychological resistance)
• Second resistance: $61.45(next major support zone)
• Third resistance: $60.80(last Friday’s swing low)
• Psychological bottom: $60.00(strategic support level)

In the declining phases from the highs, each of these numbers can serve as points for stop-loss orders, re-entry, or profit-taking by traders. However, not all levels need to be reached; each support breach updates the market’s new reference point.

Conditions to reverse the bearish trend… Settling above $64.00 is essential

For the current bearish scenario to be invalidated, clear conditions must be met. It is not enough to see a temporary rebound; the price must stably settle above $64.00(acceptance).

Reclaiming this zone would weaken the sell-dominant structure and provide a reason to attempt retesting the all-time high again. The subsequent upward path could be as follows:

• Stabilize above $64.00 → Reattempt at $64.65(all-time high)
• Break through $64.65 → Test psychological resistance at $65.00
• Clear breakthrough of $65.00 → Potential for additional upward momentum

Inflection point… Support breach is not the final signal

Currently, silver(XAG/USD) is at a typical inflection point where, although the “support breach has favored the downside,” the situation could reverse depending on whether it recovers above $64.00acceptance. While short-term technical indicators are signaling weakness, the outcome will depend on whether profit-taking at lows and buying at highs collide, which will determine the future direction.