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.

Christian Borjon Valencia FXStreet

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 price	27.88
Today Daily Change	-0.58
Today Daily Change %	-2.04
Today daily open	28.46

Trends
Daily SMA20	25.95
Daily SMA50	24.25
Daily SMA100	23.91
Daily SMA200	23.57

Levels
Previous Daily High	28.5
Previous Daily Low	27.77
Previous Weekly High	27.5
Previous Weekly Low	24.75
Previous Monthly High	25.77
Previous Monthly Low	22.51
Daily Fibonacci 38.2%	28.22
Daily Fibonacci 61.8%	28.05
Daily Pivot Point S1	27.98
Daily Pivot Point S2	27.51
Daily Pivot Point S3	27.26
Daily Pivot Point R1	28.71
Daily Pivot Point R2	28.97
Daily Pivot Point R3	29.44

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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