Sliver (XAG/USD) Analysis
Key Points: -
· The price of Silver is fluctuating near a 10-week high, experiencing a two-day winning streak, but showing limited upward momentum recently.
· The clear break of the yearly horizontal resistance and bullish MACD signals favor buyers of XAG/USD (Silver/US Dollar).
· However, overbought RSI conditions present a challenge for further upside, potentially targeting the double tops recorded in April and May.
Today's Scenario: -
Silver price recorded slight gains despite the overall strength of the US Dollar (USD) against other major currencies. The decline in US Treasury bond yields contributed to the support for silver. Although the USD received a boost from soft US housing data and mixed Retail Sales figures, silver managed to trade at $25.14, showing an increase of 0.34% from its opening price.
Diagram of XAG/USD (Silver): -
Economic Events: -
Buy Scenario: -
On the upside, if the bullish momentum persists, the intraday buyers may target the $26.00 round figure before attempting to breach the "double top" formation level around $26.10-15.
Should the XAG/USD disregard the overbought RSI and successfully break above $26.15, it opens the possibility of a strong rally towards the previous yearly high of around $27.00. Till we did not recommend buying Silver (XAG/USD).
Sell Scenario: -
Silver price (XAG/USD) is currently trading around $25.15, taking a breather after a two-day uptrend that led to a 2.5-month high during the sluggish Asian session on Thursday. The price action justifies the overbought RSI, but the bulls are still in control.
The bullish MACD signals, along with the breakout above a horizontal area around $24.50-55 (comprising multiple tops since early January), have enabled the silver price to reach the multi-day top.
As long as the XAG/USD remains above $24.50 on a daily closing basis, the bullish sentiment is likely to continue. However, a decline towards the 50-day moving average (DMA) level, approximately $23.60, could be expected.
In case of a deeper correction, the convergence of the 200-DMA and an upward-sloping support line from March 10, near $22.90, will be crucial for the bears to overcome to regain control. Till we do not advise selling silver (XAG/USD).
Support and Resistance Level: -
S1 24.98 - R1 25.28
S2 24.81 - R2 25.41
S3 24.68 - R3 25.57