Silver Price Analysis: XAG/USD rebounds, recouping earlier losses
- Double top formation in XAG/USD daily chart targets a fall toward $22.91.
- Silver surpasses crucial support levels, turning resistance at 20-day and 50-day EMAs.
- Oscillators like RSI and 3-day RoC suggest selling pressure fading as the Silver price recovers.
Silver price bounced off after dipping below the 50-day Exponential Moving Average (EMA) at $24.27, erasing some of its earlier losses that sent the white metal to a new daily low of $23.88. At the time of writing, the XAG/USD is trading at $24.05, above its opening price by 0.45%.
Silver Price Analysis: XAG/USD Technical outlook
The XAG/USD daily chart portrays the formation of a double top, which targets a fall toward $22.91. After XAG/USD failed to crack the $26.13 year-to-date (YTD) high, it opened the door for a pullback, dragging Silver’s price toward $24.00.
As XAG/USD fell, the white metal surpassed crucial support levels, turning resistance like the 20-day EMA at $24.88 and the 50-day EMA at $24.27. Nevertheless, if XAG/USD crosses below $24.00, it would exacerbate a test of the 100-day EMA at $23.48, followed by the double top target of $22.90, a few pips above the 200-day EMA at $22.76.
Oscillators, like the Relative Strength Index (RSI) indicator at bearish territory, have made a U-turn as the white metal recovers; while the 3-day Rate of Change (RoC) shows that selling pressure has begun to fade.
Silver Price Action – XAG/USD Daily chart
Author
Christian Borjon Valencia
FXStreet
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.
