Image Source: Pixabay
- Silver pulled back sharply from its highest point since February 2021, suggesting that the rally might be overextended.
- If it breaks below key supports at $28.28 and $28.00 in the coming days, further declines to $27.54 and $27.00 could occur.
- A recovery above the $28.00 mark could reignite bullish sentiment.
The price of silver tumbled on Friday after reaching three-year highs that were last touched in February 2021. The grey metal peaked at the $29.79 level before it plunged around $2.00. The XAG/USD cross recently traded at around $27.84, down approximately 2.01%.
XAG/USD Price Analysis: Technical Outlook
Silver appeared to be bullishly biased despite retreating sharply after spiking toward the $29.70 area. However, achieving a close below the June 10, 2021 high-turned-support at $28.28 and clearing below the $28.00 mark seemingly opened the door for a pullback.
Therefore, XAG/USD's first support would be the April 10 low at the $27.54 level, ahead of challenging the $27.00 figure. Further losses could be seen at the high-turned-support at $26.12.
On the other hand, strong bullish momentum remained, and if buyers could reclaim the $28.00 level in next week's trading, that could put the continuation of the rally back on the table. The first supply zone would be the June 10, 2021 high at $28.28, before testing the $28.74 level. Once surpassed, the next stop would be the year-to-date high at $29.79.
XAG/USD Price Action – Daily Chart
(Click on image to enlarge)
XAG/USD Technical Levels
More By This Author:
AUD/USD Stays Firm Amid Mixed US Economic DataAUD/USD Hovers Near 0.6600 As Markets Await Aussie’s Business, Consumer Confidence Data
The Gold Price Soared To Unseen Highs Amid High US Yields, Unfazed By US Jobs Data
Comments
Log in or sign up to join the conversation.