|

Silver Price Analysis: XAG/USD plummets after hitting three-year high, stays bullish

  • Silver pulls back sharply from its highest point since February 2021, suggesting the rally might be overextended.
  • If it breaks below key supports at $28.28 and $28.00, further declines to $27.54 and $27.00 could occur.
  • A recovery above $28.00 could reignite bullish sentiment, aiming for previous highs and resistances.

Silver's price tumbled on Friday’s session after refreshing three-year highs reached in February 2021. The grey metal peaked at $29.79 before plunging close to $2.00. The XAG/USD traded at $27.84, down 2.01%.

 XAG/USD Price Analysis: Technical outlook

Silver is bullishly biased despite retreating sharply after spiking toward the $29.70s area. However, achieving a daily close below the June 10, 2021, high turned support at $28.28 and clearing below $28.00 has opened the door for a pullback. Therefore, XAG/USD's first support would be the April 10, low at $27.54, ahead of challenging the $27.00 figure. Further losses are seen on May 5, 2023, with high turned support at $26.12.

On the other hand, strong bullish momentum remains, and if buyers reclaim $28.00, that could be put back into the table, the continuation of the rally. The first supply zone would be June 10, 2021, high at $28.28, before testing May 18, 2021, at $28.74. Once surpassed, the next stop would be the year-to-date (YTD) high at $29.79.

XAG/USD Price Action – Daily Chart

XAG/USD

Overview
Today last price27.88
Today Daily Change-0.58
Today Daily Change %-2.04
Today daily open28.46
 
Trends
Daily SMA2025.95
Daily SMA5024.25
Daily SMA10023.91
Daily SMA20023.57
 
Levels
Previous Daily High28.5
Previous Daily Low27.77
Previous Weekly High27.5
Previous Weekly Low24.75
Previous Monthly High25.77
Previous Monthly Low22.51
Daily Fibonacci 38.2%28.22
Daily Fibonacci 61.8%28.05
Daily Pivot Point S127.98
Daily Pivot Point S227.51
Daily Pivot Point S327.26
Daily Pivot Point R128.71
Daily Pivot Point R228.97
Daily Pivot Point R329.44

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.

More from Christian Borjon Valencia
Share:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

EUR/USD holds above 1.1750 due to cautious trade before FOMC Minutes

EUR/USD holds ground after four days of little losses, trading around 1.1770 during the Asian hours on Tuesday. The pair remains steady as US Dollar moves little amid market caution ahead of the Federal Open Market Committee December Meeting Minutes due later in the day, which could offer insights into the Federal Reserve’s 2026 outlook.

GBP/USD finds key support near 1.35 despite year-end grind

GBP/USD remains bolstered on the high end as markets grind through the last trading week of the year. Cable caught a bullish tilt to keep price action on the high side of the 1.3500 handle, though year-end holiday volumes are unlikely to see significant progress in either direction as 2025 draws to a close.

Gold gains on Fed rate cut bets, safe-haven demand

Gold price edges higher above $4,350 during the Asian trading hours on Tuesday. The precious metal recovers some lost ground after falling 4.5% in the previous session, which was gold's largest single-day loss since October. Increased margin requirements on gold and silver futures by the Chicago Mercantile Exchange Group, one of the world’s largest trading floors for commodities, prompted widespread profit-taking and portfolio rebalancing.

Crypto market outlook for 2026

Year 2025 was volatile, as crypto often is.  Among positive catalysts were favourable regulatory changes in the U.S., rise of Digital Asset Treasuries, adoption of AI and tokenization of Real-World-Assets.

Economic outlook 2026-2027 in advanced countries: Solidity test

After a year marked by global economic resilience and ending on a note of optimism, 2026 looks promising and could be a year of solid economic performance. In our baseline scenario, we expect most of the supportive factors at work in 2025 to continue to play a role in 2026.

Crypto market outlook for 2026

Year 2025 was volatile, as crypto often is.  Among positive catalysts were favourable regulatory changes in the U.S., rise of Digital Asset Treasuries (DAT), adoption of AI and tokenization of Real-World-Assets (RWA).