Silver Price Analysis: XAG/USD Plummeted More Than 2% And Dropped Below $29.50

By Christian Borjon Valencia of FX Street

Saturday, July 20, 2024 7:10 PM EDT

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Silver edged down approximately 2.05% on Friday, as the recent three-day declined continued amid profit-taking.
Technicals seemed to suggest more selling to be seen as the RSI dropped below 50.
Key supports levels included the $29.00 mark, the June 26 low of $28.57, and the 100-DMA at $28.23.
For a bullish turn, the XAG/USD cross must surpass the $29.50 mark, with resistance seen at $30.17 and $31.00.

The price of silver extended its losses for three straight days this past week, as the grey metal plummeted more than 5% due to investors booking profits, according to Jim Wyckoff of Kitco. The grey metal witnessed its meteoric rise over the course of eleven days abruptly end as the XAG/USD traded beneath the $29.20 mark, losing around 2.05%.

XAG/USD Price Analysis: Technical Outlook

Although XAG/USD maintained a bullish bias in the recent trading session, buyers might find it difficult to gain traction in the coming days. The Relative Strength Index (RSI)'s vertical drop that pierced the 50-neutral line seemed to indicate that further selling pressure may lie ahead.

On further weakness, the XAG/USD cross' first line of support would be the $29.00 psychological figure. Once cleared, the next support would be the June 26 low at $28.57, followed by the 100-DMA at $28.23.

For a bullish continuation, the XAG/USD would have to climb above the $29.50 figure so that buyers could test the $30.00 mark. On further strength, silver’s next resistance would be the 50-DMA at the $30.17 level before the $31.00 mark could be challenged.

XAG/USD Price Action – Daily Chart

(Click on image to enlarge)

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