Silver Price Analysis: XAG/USD is testing a key resistance level at $28.50 per ounce
|- Silver is trading 2.85% higher on Monday following two previous 4-hour bullish closes.
- There is a resistance level at USD 28.50 per ounce that could be taken out.
Silver 4-hour price chart
Silver has moved higher at the beginning of the week as the dollar struggles once again. In terms of metals, silver leads the charge today closely followed by palladium which trades 2% higher. Leading into the rest of the week, Friday's NFP data will be an important event that could inspire some volatility.
Looking at the 4-hour chart, the price looks to be heading to test the next resistance at USD 28.50 per troy ounce. A break if this level could mean that the recent high of USD 29.85 per ounce might be the target for the bulls. If this fails then USD 26.16 per ounce has been a big thorn in the side for the bears as it is a very stubborn support zone. The market tried to break the level six times on this chart alone.
The indicators are both positive at the moment as the MACD histogram and signal lines are above zero. The Relative Strength Index is near the positive overbought area but there is still some space for a move higher.
Overall the trend is still a positive one. If the aforementioned USD 28.50 per ounce level breaks then a push for the high on the chart is the obvious target.
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Additional levels
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