XAG/USD Market Analysis: Descending Triangle Trajectory and COT Metrics

Note: This section contains information in English only.
Source: Dukascopy Bank SA
The Silver market is currently navigating a high-stakes crossroads defined by macro-structural consolidation. Mechanically, the technical picture leans bearish-to-neutral in the short term as daily price action compresses inside a massive, multi-month Descending Triangle pattern.

 

The Structural Boundaries

The Descending Resistance Ceiling: A highly respected, downward-sloping trendline originates from the macro peak established well above the 120.000 level. This boundary has systematically suppressed every major rally over the last few months, forcing a clear sequence of lower highs.

The Horizontal Support Floor: Conversely, buyers have drawn a strict line in the sand between 70.000 and 72.000. This horizontal base has faced multiple high-volume tests since March 2026, and each time, it has successfully triggered aggressive demand.

Immediate Price Action: The daily candle indicates a close at 73.240. Short-term momentum remains tilted to the downside following a strict technical rejection at the 100-day Simple Moving Average (SMA), driving the market back down into the apex of the triangle.



CoT Silver Data* Analysis
  • Trend Reversal: Net Long positions (% OI) bottomed in early February at 3.5% before surging into a strong bullish accumulation phase.
  • Bullish Crossover: The metric decisively broke above its 26-period moving average in late April, signaling a structural shift in market sentiment.
  • May Peak & Pullback: Positions peaked sharply at 15.2% in mid-May before pulling back to 9.85% by May 26.




*-
Disaggregated Futures Only Reports from CFTC for year 2026

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