Silver Price Analysis: XAG/USD retreats after climbing to the highest level since February 25
|- Silver stalled its intraday positive move near a resistance marked by 61.8% Fibo. level.
- Slightly overbought RSI on hourly charts seemed to have prompted some profit-taking.
- The set-up supports prospects for the emergence of some dip-buying at lower levels.
Silver faded the post-NFP spike to the highest level since February 25 and dropped to fresh daily lows, around the $27.15 region in the last hour.
The intraday positive move stalled near the $27.65-70 region – a resistance marked by the 61.8% Fibonacci level of the $30.07-$23.78 downfall. This is followed by the $28.00 round-figure mark, which should now act as a key pivotal point for short-term traders.
Meanwhile, a modest US dollar rebound from one-week lows was seen as a key factor that prompted some profit-taking around the XAG/USD amid slightly overbought RSI on hourly charts. Hence, any subsequent fall might still be seen as an opportunity for bullish traders.
From current levels, the 50% Fibo. level, around the $26.95-90 area might protect the immediate downside. This is followed by the $26.60-50 strong horizontal resistance breakpoint, which if broken might accelerate the corrective slide to the $26.00 round figure.
The latter coincides with the 38.2% Fibo. level and should act as a strong near-term base for the XAG/USD. That said, a convincing break below will negate any near-term bullish bias, rather prompt some aggressive technical selling and turn the commodity vulnerable.
On the flip side, the daily swing highs, around the $27.65-70 area now seems to act as an immediate resistance ahead of the $28.00 mark. Some follow-through buying should pave the way for a move towards the $28.80-85 supply zone before the XAG/USD reclaims the $29.00 mark.
XAG/USD daily chart
Techical levels to watch
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 and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.