XAG/USD outlook: Silver hits new multi-year high
|XAG/USD
Silver hit the highest in nearly 14 years on Monday, testing levels above $39 as strong bullish acceleration extends into third consecutive day.
Growing uncertainty over US tariffs and weak economic outlook continue to fuel demand and underpin the price.
Fresh rally broke above recent $35.30/$37.30 consolidation range, signaling continuation of broader uptrend and unmasking psychological $40 barrier.
Technical picture on daily chart is firmly bullish but overbought that threatens of increased headwinds on approach to $40 target.
This may put bulls on hold for consolidation which should ideally hold above $37 zone (former breakpoint, reverted to support) to keep bulls intact for fresh push higher.
Sustained break above $40 to generate fresh bullish signal and expose targets at $40.68 (Fibo 76.4% of $49.78/$11.23, 2011/2020 downtrend) and $41.00 (round-figure).
Caution on loss of $37 handle that would weaken near-term structure and risk attack at lower pivots at $35.00 zone (former range floor / broken Fibo 61.8% of $49.78/$11.23 downtrend).
Res: 39.50; 40.00; 40.68; 41.00.
Sup: 38.25; 37.31; 36.15; 35.00.
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