Silver Price Analysis: XAG/USD collapses below $30.00 as double top emerges

Silver breaches key support levels amid ‘double top’ chart pattern confirmation.
XAG/USD fall amid lower US T-bond yields as traders book profits.
XAG/USD double top pattern objective would be $27.80.

Christian Borjon Valencia FXStreet

Silver prices sank sharply on Tuesday amid falling US Treasury bond yields and a firm US dollar. The grey metal dropped more than 4% at the time of writing and trades at $29.48 after the XAG/USD hit a daily high of $30.88.

XAG/USD Price Analysis: Technical outlook

The XAG/USD fell below the latest cycle high seen on April 12 at $29.79, opening the door for deeper losses. Traders had witnessed the confirmation of a ‘double top’ chart pattern, opening the door to test key support levels on the way south.

The first one would be the psychological $29.00. A breach of the latter will expose previous key resistance levels that turned support, like the May 18, 2021, high of $28.74, followed by the June 10, 2021, high of $28.34. Up next would be the ‘double top’ objective at $27.80.

XAG/USD Price Action – Daily Chart

XAG/USD

Overview
Today last price	29.5
Today Daily Change	-1.23
Today Daily Change %	-4.00
Today daily open	30.73

Trends
Daily SMA20	30.09
Daily SMA50	28.26
Daily SMA100	25.77
Daily SMA200	24.52

Levels
Previous Daily High	30.81
Previous Daily Low	29.78
Previous Weekly High	32.3
Previous Weekly Low	30.19
Previous Monthly High	32.51
Previous Monthly Low	26.02
Daily Fibonacci 38.2%	30.42
Daily Fibonacci 61.8%	30.17
Daily Pivot Point S1	30.07
Daily Pivot Point S2	29.41
Daily Pivot Point S3	29.04
Daily Pivot Point R1	31.1
Daily Pivot Point R2	31.47
Daily Pivot Point R3	32.13

Author

Christian Borjon Valencia

FXStreet

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

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