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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Author
Slobodan Drvenica
Windsor Brokers
Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.
