Silver Price Analysis: XAG/USD, rejected above $22.00, eases to $21.40 area
|- Silver's rally fails at $22.05 and retreats to $21,50.
- The precious metal has reached an important resistance near $22.00.
- With RSI at overbought levels, some consolidation is likely.
Silver prices’ uptrend from early November lows in the area of $19.00 have been halted on Friday at five-month highs of $22.05, before pulling back to the mid-range of $21.00. On the weekly chart, however, the pair is on track to post a nearly 5% rally.
The precious metal has reached an important resistance hurdle in the vicinity of $22.00, where the 50% Fibonacci retracement level of the April - September downtrend and the June 16, 17, and 21 highs are holding back the bulls.
Beyond that, the pair has reached overbought levels on hourly and daily charts, which suggest that some consolidation or even a moderate pullback is still consistent with the possibility of further appreciation.
On the upside, above the mentioned $22.00, the pair might target June 3 and 6 highs at $22.50 before aiming for the 61.8% retracement of the mentioned downtrend, at $23.00.
Bearish attempts are so far held above the 200-day MA, now at $21.45, with the next potential support levels at $20.95 (October 10 low) and $20.35 (November 7 low).
XAGUSD daily chart
Technical levels to watch
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.