Silver Price Forecast: XAG/USD Tumbles After Hitting 12-Year Peak, Bearish Engulfing Looms
Image Source: Pixabay
- Silver price drops sharply, erasing Tuesday's gains, driven by profit-taking and a rise in US Treasury yields.
- A daily close below $33.78 could confirm a ‘bearish engulfing’ pattern, signaling potential for deeper pullback to $32.95 and $32.51.
- For a bullish continuation, buyers need to reclaim the $34.00 level and retest the year-to-date high at $34.86.
Silver price retreats after posting a multi-year high at $34.86, yet erases more than Tuesday’s gains, and is down over 3.30 percent. At the time of writing, the XAG/USD trades at $33.66, sponsored by higher US Treasury yields and a strong US Dollar.
XAG/USD Price Forecast: Technical outlook
Silver price reversed its course on Wednesday, after printing 12-year peak. The Relative Strength Index (RSI) tumbled after reaching overbought conditions, an indication that longs were booking profits. Sellers moved in and capitalized on that move due to a mean reversion play.
If XAG/USD records a daily close below October 22 low of $33.78 it would confirm a ‘bearish engulfing’ chart pattern and pave the way for a deeper pullback. In that outcome, Silver’s first support would be October 4 swing high at $32.95. A breach of the latter will reveal the May 20 peak at $32.51, followed by the October 17 low of $31.32.
For a bullish continuation, buyers must clear the $34.00 psychological figure, before challenging the YTD high at $34.86.
XAG/USD Price Chart – Daily
More By This Author:
Silver Price Forecast: XAG/USD Skyrockets To 12-Year High, Approaches $35.00Gold Price Declines Weighed By US Yields, Strong US Dollar
Gold Hit All-Time Highs On Concerns About Middle East, US Elections
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
