Silver Price Analysis: XAG/USD rallies above $28.00 as bullish trend is intact

Silver surges, bolstered by easing US producer prices, sparking interest in precious metals.
Though overbought, strong bullish momentum could target the next resistance at $28.74.
Support established at $28.00 and $27.54, key during potential pullbacks.

Christian Borjon Valencia FXStreet

Silver price surges on Thursday after the release of prices paid by producers in the United States (US) showed that factory inflation continues to decelerate, contrasting Wednesday’s red-hot Consumer Price Index (CPI). Investors capitalized on that, as they took advantage of the dip in precious metals and lifted their prices near year-to-date peaks.

The XAG/USD trades at $28.45 and clocks minimal gains of 0.09% after ending Thursday’s session up by 1.94%.

XAG/USD Price Analysis: Technical outlook

The grey metal rally is set to extend after rallying after June 10, 2021, at a high of $28.28, which has opened the door for further upside. Silver gains momentum, although momentum oscillators suggest it's overbought. The Relative Strength Index (RSI), at 77.41, is still shy of reaching the 80 levels sought by traders as the overbought condition in a strong bullish trend.

With that said Silver’s next resistance would be the May 18 high at $28.74, followed by the psychological $29.00 figure. On the other hand, if sellers drag prices below the June 10, 2021, high, turned support, that will pave the way for further losses. The first support would be $28.00, followed by the April 10 low of $27.54, ahead of $27.00.

XAG/USD Price Action – Daily Chart

XAG/USD

Overview
Today last price	28.5
Today Daily Change	0.59
Today Daily Change %	2.11
Today daily open	27.91

Trends
Daily SMA20	25.77
Daily SMA50	24.13
Daily SMA100	23.86
Daily SMA200	23.55

Levels
Previous Daily High	28.53
Previous Daily Low	27.54
Previous Weekly High	27.5
Previous Weekly Low	24.75
Previous Monthly High	25.77
Previous Monthly Low	22.51
Daily Fibonacci 38.2%	27.91
Daily Fibonacci 61.8%	28.15
Daily Pivot Point S1	27.46
Daily Pivot Point S2	27
Daily Pivot Point S3	26.46
Daily Pivot Point R1	28.45
Daily Pivot Point R2	28.98
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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