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
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.
