Silver Price Analysis: XAG/USD on the rise, $27.80 is a crucial resistance

While silver trades higher, resistance at $27.80 is still intact.
A move above that would confirm a range breakout.

Omkar Godbole FXStreet Contributor

Silver trades near $27.55 at press time, representing a 0.87% gain on the day.

While the metal is flashing green, it is yet to take out resistance at $27.80 (the previous week's high).

A move above that level would imply a bullish breakout from the narrowing price range signaled by the previous week's candle, whose high and low falls well within the preceding week's price range.

Above $27.80, the focus would shift to $30.09, the high seen earlier this week. On the other hand, acceptance under the previous week's low of $27.31 would put the bears in a commanding position, exposing support at $24.06, the higher low created on Jan. 6.

Daily chart

Trend: Bullish above $27.80

Technical levels

1. R3 28.09
2. R2 27.76
3. R1 27.51
PP 27.19
1. S1 26.94
2. S2 26.61
3. S3 26.36

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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