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Silver Price Analysis: XAG/USD hit YTD high at $26.08 but retreated on a bearish-engulfing pattern

  • XAG/USD is poised for five consecutive weeks of gains, up 0.81%.
  • Silver’s break below $26.00 opened the door for a test of $25.00.

Silver price reached a new YTD high at $26.08, but retraces, as traders booking profits, are forming a bearish-engulfing candle pattern, suggesting that further downside is warranted. Among technical indicators, US economic news and Fed speakers underpinned the US Dollar (USD) to the detriment of the white metal. At the time of typing, the XAG/USD is trading at $25.23, down 2.26%.

XAG/USD Price Action

The XAG/USD is still upward biased from a daily chart perspective. The emergence of a bearish candlestick pattern and the Relative Strength Index (RSI) exiting oversold territory triggered profit-taking in the white metal. Additionally, a negative divergence between XAG/USD’s price action and the Rate of Change (RoC) indicates that buying pressure is waning, exacerbating Silver’s drop below $26.00.

If XAG/USD falls below $25.00, that will pave the way toward the February 2 high at $24.63, the previous resistance turned support, followed by the 20-day Exponential Moving Average (EMA) at $24.20. Once cleared, the psychological $24.00 level would be next.

Conversely, for a bullish continuation, the XAG/USD needs to get above the April 13 low of $25.40, which could motivate XAG buyers to re-enter the market at solid price levels. In that case, the XAG/USD first resistance would be the YTD high at $26.08, followed by April 18, 2022, swing high at $26.21, followed by 2022 high at $26.94.

XAG/USD Daily Chart

XAG/USD Daily Chart

XAG/USD Technical Levels

 

Overview
Today last price25.16
Today Daily Change-0.66
Today Daily Change %-2.56
Today daily open25.82
 
Trends
Daily SMA2023.82
Daily SMA5022.41
Daily SMA10022.89
Daily SMA20021.23
 
Levels
Previous Daily High25.98
Previous Daily Low25.39
Previous Weekly High25.14
Previous Weekly Low23.57
Previous Monthly High24.16
Previous Monthly Low19.9
Daily Fibonacci 38.2%25.75
Daily Fibonacci 61.8%25.61
Daily Pivot Point S125.49
Daily Pivot Point S225.15
Daily Pivot Point S324.9
Daily Pivot Point R126.07
Daily Pivot Point R226.31
Daily Pivot Point R326.65

Author

Christian Borjon Valencia

Christian Borjon began his career as a retail trader in 2010, mainly focused on technical analysis and strategies around it. He started as a swing trader, as he used to work in another industry unrelated to the financial markets.

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