Silver Price Analysis: XAG/USD pulls back as dark cloud cover loom

Silver retreats to $28.09, unable to hold above the crucial $29 mark, indicating potential further declines.
The 'dark cloud cover' technical pattern suggests vulnerability and possible downward movement.
Focus remains on silver's ability to sustain above the $28.00 threshold, with key support and resistance levels closely watched.

Christian Borjon Valencia FXStreet

Silver prices retreat from daily highs reached $29.01, dropping 2.63%, affected by high US Treasury yields, and stirring resistance around the $29.00 threshold. The XAG/USD trades at $28.09, breaking key support levels on its way toward current spot prices.

XAG/USD Price Analysis: Technical outlook

From a technical standpoint, XAG/USD buyers failed to hold Siver’s quote above the psychological $29.00 level after reaching a year-to-date (YTD) high of $29.79. That exacerbated the grey’s metal drop toward the $28.00 mark, opening the door for further downside. During the last couple of days, price action formed a ‘dark cloud cover’ that needs confirmation below the April 15 low of $27.59.

Momentum was extremely bullish, though the Relative Strength Index (RSI) exited from overbought conditions during the day, sponsoring a leg-down on Silver. That said, XAG/USD could witness a pullback before buyers attempt to challenge the $29.00 mark.

Given the backdrop, Siver’s first support would be $27.59, followed by the $27.00 mark. Further losses are seen at $26.29, the April 5 low. On the flip side, if buyers keep the XAG/USD spot price above $28.00, the next resistance levels are seen at the June 10, 2021, high at $28.28, followed by the May 18, 2021 high at $28.74.

XAG/USD Price Action – Daily Chart

XAG/USD

Overview
Today last price	28.1
Today Daily Change	-0.77
Today Daily Change %	-2.67
Today daily open	28.87

Trends
Daily SMA20	26.28
Daily SMA50	24.46
Daily SMA100	24
Daily SMA200	23.63

Levels
Previous Daily High	28.89
Previous Daily Low	27.62
Previous Weekly High	29.8
Previous Weekly Low	26.88
Previous Monthly High	25.77
Previous Monthly Low	22.51
Daily Fibonacci 38.2%	28.41
Daily Fibonacci 61.8%	28.11
Daily Pivot Point S1	28.03
Daily Pivot Point S2	27.19
Daily Pivot Point S3	26.77
Daily Pivot Point R1	29.3
Daily Pivot Point R2	29.73
Daily Pivot Point R3	30.57

Author

Christian Borjon Valencia

FXStreet

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

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