Silver Price Analysis: XAG/USD Collapses Below 50-DMA As Surrenders $29.00
Image Source: Pixabay
- Silver drops to $28.90, under 50-day MA, after Fed's Bowman's hawkish remarks.
- Bearish pattern evident, with RSI suggesting further downside.
- Support levels: $28.74 (May 18 high), $28.28 (June 10 high), $28.00, $26.82 (100-DMA).
- Resistance points: $29.16 (50-DMA), $31.54 (June 7 high), $32.00, $32.51 (YTD high).
Silver price collapsed on Tuesday amid a strong US Dollar, sponsored by hawkish comments by Fed Governor Michelle Bowman. Although US Treasury yields were unchanged, the Greenback registered moderate gains, which weighed on the grey metal. The XAG/USD trades at $28.90, below its 50-day moving average (DMA) for the first time since March 1.
XAG/USD Price Analysis: Technical outlook
The grey metal formed a ‘bearish engulfing’ chart pattern last week, which opened the door for further downside. Momentum favors sellers, as shown by the Relative Strength Index (RSI), which stands bearish. This suggests that Silver could extend its losses.
Hence, the XAG/USD's first support would be the May 18, 2021, high turned support at $28.74, ahead of challenging June 10, 2021, high at $28.28. Key support levels lie underneath, like the $28.00 figure, followed by the 100-DMA at $26.82.
Conversely, if XAG/USD resumes its uptrend, the next resistance level would be the 50-day moving average (DMA) at $29.16. Once surpassed, the next stop is the June 7 high of $31.54. Clearing this level would target $32.00 before challenging the year-to-date (YTD) high of $32.51.
XAG/USD Price Action – Daily Chart
XAG/USD
| OVERVIEW | |
|---|---|
| Today last price | 28.91 |
| Today Daily Change | -0.67 |
| Today Daily Change % | -2.27 |
| Today daily open | 29.58 |
| TRENDS | |
|---|---|
| Daily SMA20 | 30.11 |
| Daily SMA50 | 29.16 |
| Daily SMA100 | 26.81 |
| Daily SMA200 | 24.98 |
| LEVELS | |
|---|---|
| Previous Daily High | 29.73 |
| Previous Daily Low | 29.35 |
| Previous Weekly High | 30.86 |
| Previous Weekly Low | 28.93 |
| Previous Monthly High | 32.51 |
| Previous Monthly Low | 26.02 |
| Daily Fibonacci 38.2% | 29.58 |
| Daily Fibonacci 61.8% | 29.49 |
| Daily Pivot Point S1 | 29.38 |
| Daily Pivot Point S2 | 29.17 |
| Daily Pivot Point S3 | 29 |
| Daily Pivot Point R1 | 29.75 |
| Daily Pivot Point R2 | 29.93 |
| Daily Pivot Point R3 | 30.13 |
More By This Author:
AUD/JPY Price Analysis: Hits 17-Year High Above 106.00 On JPY WeaknessGold Price Drops On Firm US Yields, Strong USD After Solid US Data
Silver Price Analysis: XAG/USD Sunk Below $30.00 As Bearish-Engulfing Pattern Loomed
Disclaimer: 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 ...
more
Comments
