Silver Price Analysis: XAG Stalls At $80 As Doji Candle Hints Potential Downside

Silver (XAG/USD) price falls more than 1% on Monday after gapping down over the weekend as pessimism overtook last Friday’s upbeat mood, as the Strait of Hormuz was closed and the US escalated tensions after seizing an Iran-flagged vessel. XAG/USD trades at $79.78, after reaching a daily high of $80.68.

XAG/USD Price Analysis: Technical Outlook

Silver remains upwardly biased, with key support around the 50-day Simple Moving Average (SMA) at $78.98, but on the day it weakened amid high US Treasury yields. As of writing, a doji appears to be forming, indicating neither buyers nor sellers are in control.

With that said, if XAG/USD slides below a key support trendline at around $78.00, it opens the door for a deeper pullback. Next lies the 100-day SMA at $77.53, followed by the 20-day SMA at $74.34.

On the other hand, the bullish bias will remain, unless Silver falls to a fresh low beneath $77.78. If Silver rises past $80, the next area of interest would be the last Friday high at $83.05. If surpassed, the next key resistance levels would be the March 13 high at $85.46, then the March 12 high at $87.43, and finally the March 11 peak at $89.42. Up next lies the $90.00 milestone.