Silver Price Analysis: XAG/USD clears resistance, looks only soft hurdles ahead – Confluence Detector
|The prices of silver has been on the rise, as fears of a worsening economic crisis in the US implies more fiscal and monetary support. In turn, these funds could go into precious metals, with gold prices edging toward the highs once again.
While gold-bugs await XAU/USD to hit $2,000, silver prices may prove no less interesting. The metal, used for environmental projects as well as for consumer products, has surpassed a substantial technical hurdle and could extend its gains.
The Technical Confluences Indicator is showing that XAG/USD is trading above 24.21, which is the convergence of the Fibonacci 23.6% one-month and the Simple Moving Average 5-one-day.
Further down, another noteworthy cushion awaits at 24.08, which is the meeting point of the SMA 1001-h, the Bollinger Band 4h-Middle, and the previous day's low.
Looking up, some resistance awaits at 24.35, which is a confluence line including the Fibonacci 38.2% one-day and the SMA 10-1h.
The next hurdle is 24.41, which is where the BB 15min-Upper, the BB 1h-Upper, and the previous 4h high converge.
The upside target is 24.59, where the Fibonacci 61.8% stands out among other lines.
Key XAG/USD resistances and supports
Confluence Detector
The Confluence Detector finds exciting opportunities using Technical Confluences. The TC is a tool to locate and point out those price levels where there is a congestion of indicators, moving averages, Fibonacci levels, Pivot Points, etc. Knowing where these congestion points are located is very useful for the trader, and can be used as a basis for different strategies.
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