Edward Culchenko
⬤ XAG/USD reversed sharply lower after a strong upside move, entering a rapid correction on the hourly timeframe. Price fell below the lower boundary of a short-term ascending channel and began searching for a reaction zone. The broader trend structure hasn't fully broken down yet, but short-term momentum has clearly weakened following the pullback.
⬤ Current price behavior reflects mounting selling pressure. The RSI sits near 41, signaling weak momentum and positioning close to oversold territory. Trading volume increased during the decline, confirming the move was driven by active selling rather than low liquidity. Volume Delta readings remain negative, showing sellers continue to dominate intraday flows, while price trades near the lower Bollinger Band, suggesting short-term overextension.
⬤ Key technical levels are now guiding near-term expectations. The Volume Profile shows a Point of Control around $109.98, highlighting an important intraday equilibrium area. Immediate support sits at $110.69, $109.99, and $107.88. On the upside, resistance is defined at $112.48, $114.51, and $115.82—levels that previously capped advances. Parabolic SAR positioning above price continues to reflect short-term downside pressure.
⬤ This correction is unfolding alongside broader precious metals volatility. Profit-taking in silver intensified in parallel with a pullback in gold, while a short-term recovery in the US dollar added further pressure. Despite near-term weakness, medium to long-term themes tied to safe-haven demand and industrial usage remain intact. Elevated volatility suggests price behavior around key support zones will be critical in shaping short-term market sentiment.
Edward Culchenko
