Silver Price Analysis: XAG/USD Creeps Higher As ‘Double Bottom’ Emerges

By Christian Borjon Valencia of FX Street

Tuesday, July 2, 2024 7:10 PM EDT

Silver, Bars, 5000 Grams, Real Value

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Silver advanced 0.20%, after Powell's hawkish comments.
Technicals: Uptrend within descending channel, potential 'double bottom' pattern.
Resistance levels: $29.50, $30.84 (June 21 high), $32.29 (May 29 peak), $32.51 (YTD high).
Support points: $29.00, $28.57 (June 26 low), $27.59 (April 15 low).

Silver prices rose as Tuesday’s North American session finished, trading at $29.51 and registering gains of more than 0.20% at the time of writing. The grey metal advanced as Fed Chair Jerome Powell delivered hawkish remarks at an ECB event in Portugal, where he acknowledged that the Fed’s dual mandate risks are more balanced.

XAG/USD Price Analysis: Technical outlook

Silver’s uptrend remains intact but is capped to the upside and downside by a descending channel. Although it has formed a ‘double bottom’ chart pattern, buyers lack the momentum to clear the top of the channel, as depicted by the Relative Strength Index (RSI) almost flat at the neutral midline.

To confirm the ‘double bottom’ chart pattern, XAG/USD needs to crack the next resistance level, which is $29.50. Once surpassed the next stop would be the neckline' at $30.84, the June 21 high, followed by the May 29 peak of $32.29. A breach of the latter will expose the year-to-date (YTD) high of $32.51.

Conversely, if XAG/USD falls below $29.00, the next support level would be the June 26 low of $28.57. Clearing this level could lead to a drop to the April 15 swing low of $27.59.

XAG/USD Price Action – Daily Chart

More By This Author:

Silver Price Analysis: XAG/USD Rebounds As Bulls Target $29.00
Silver Price Analysis: XAG/USD Tumbles And Remains Bearish Below $29.00
Silver Price Analysis: XAG/USD Collapses Below 50-DMA As Surrenders $29.00

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