Silver Price Analysis: XAG/USD rebounds from 7-week high, back above $22.00
|- Silver prices recover, trading at approximately $22.32 an ounce, marking a 0.27% gain after touching five-week lows at $21.88.
- Technical analysis reveals a neutral to downward bias, but a 'hammer' pattern formation on the daily chart suggests potential bullish momentum.
- For a bullish shift, silver needs to surpass the 50-day moving average (DMA) at $22.65, targeting the 200-DMA at $23.25 and the October 20 high at $23.69.
Silver price finds its foot and rises after reaching five-week lows at $21.88 on Monday, and exchanges hands at around $22.32 a troy ounce, late during the North American session, printing gains of 0.27%, at the time of writing.
From a technical standpoint, the grey’s metal is neutral to downward biased, but the daily chart portrays price action is forming a ‘hammer,’ usually a bullish signal, after posting a series of seven successive days registering lower highs and lows, that ended on Monday.
Hence, if XAG/USD would turn bullish, buyers must initially reclaim the 50-day moving average (DMA) at $22.65. A breach of the latter would expose the 200-DMA at $23.25, followed by October 20, the latest cycle high at $23.69. Once cleared, a bullish resumption would be underway.
On the other hand, a drop below the October 13 low of $21.87, would cement a bearish case, with sellers next target being the October 4 swing low of $20.69, followed by the year-to-date (YTD) low of $19.90.
XAG/USD Price Analysis – Daily Chart
XAG/USD Technical Levels
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