fxs_header_sponsor_anchor

News

Silver Price Analysis: XAG/USD Bounced at the 20-DMA, reclaims $23.00 on risk aversion

  • Silver prices bounce and cling to gains, despite a buoyant US Dollar.
  • Near-term, XAG/USD might consolidate, as mixed signals between the RSI/RoC suggest caution is warranted.

Silver is recovering some ground after falling to weekly lows during the New York session of $22.56. However, a late buying impulse keeps XAG/USD trading in the green with gains of 0.41%. At the time of writing, the XAG/USD is trading at $23.21, above its opening price, and set to finish the week with losses of 1.23%.

Silver Price Analysis: Technical outlook

The XAG/USD daily chart depicts that the non-yielding metal remains upward biased after testing an upslope support trendline drawn from November lows. However, failure to crack the latter and its confluence with the 20-day EMA triggered Silver recovery. Also, the Relative Strength Index (RSI) and the Rate of Change (RoC) suggest that buyers are gathering momentum, and a daily close above the December 15 close of $23.05 could keep the trend intact.

In the near-term, the XAG/USD one-hour chart suggests that Silver’s dip below $22.60 opened the door for sellers to lean onto the 200-Exponential Moving Average (EMA) at $23.22 as immediate intraday resistance. Furthermore, mixed signals between the RSI – aiming upwards, and RoC – depicting buying pressure losing momentum might refrain traders from opening new positions.

Nevertheless, if XAG/USD breaks above the 200-EMA, the immediate ceiling level would be the daily pivot at $23.33, followed by the R1 pivot at $23.69. On the downside, the XAG/USD first support would be the 50-EMA at 23.16. A breach of the latter will expose December’s 15 daily low at $23.06, ahead of the $23.00 mark.

Silver Key Technical Levels

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.