Silver Price Analysis: XAG/USD eyes 2020 highs at $29.86 amid lack of healthy resistance levels – Confluence Detector

Dhwani Mehta FXStreet

With retail attention back on the whilte metal, Silver (XAG/USD) is trading near the highest levels in six months reached at $29.01 in early Asia. A surge in silver’s demand in physical markets, courtesy of the spillover of the Reddit-driven short squeeze, is the main catalyst behind the ongoing rally in the prices.

Silver has gained nearly 12.50% over the past four trading sessions due to the retail-trade frenzy. The metal looks to retest the 2020 highs at $29.86, as industry experts believe that the physical silver stock is almost over.

How is silver positioned on the technical graphs?

Silver Price Chart: Key resistances and supports

The Technical Confluences Indicator shows that the path of least resistance appears to the north amid a lack of healthy resistance levels.

The XAG bulls are battling the $28.60 hurdle, which the Bollinger Band one-hour Upper, above which six-month highs at $29.01 could be retested.

Buyers would then target seven-year tops at $29.86 en route $30 threshold.

Any pullbacks could meet strong demand around $28.45, which is the convergence of the pivot point one-month R1 and pivot point one-day R2.

The next relevant downside target is seen at the $28 round figure. Further south, the intraday low of $26.98.

Here is how it looks on the tool

About Confluence Detector

The TCI (Technical Confluences Indicator) 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.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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