Silver Price Analysis: XAG/USD remains pledged to an overall bullish tone – DBS Bank

Silver’s 20.8% rally from the March lows of 23.78 has been contained at a Donchian resistance of 23.78. A weaker Relative Strenght Index (RSI) and Moving Average Convergence/Divergence (MACD) profile suggest some consolidation and retracement moves are ongoing. Nonetheless, in framing silver’s rise from March 2020s 11.64 lows, XAG/USD still holds an inherent bullish bias unless it breaks under 23.81, Strategist at DBS Bank Benjamin Wong reports.

Any retracement decline looks to find 26.05-26.27 support 

“The technical indicators are hinting some near-term weakness as prices grapple with a weakened RSI and MACD profile.”

“June is typically a month of consolidation for precious metals. Hence, silver’s aged two-month uptrend should cool off for a bit of consolidation and retracement play.”

“Silver’s rise from the ashes of March 2020s 11.64 lows remain caged in a bullish setting unless it treks under 23.81 and a total lost cause is triggered if 20.75 is traded under. Fairly good support is accorded at the cloud support levels of 26.05-26.27. Additionally, the convergence of the 50-day moving average (DMA) 26.58 and the 100-DMA 26.48 is something to take note of.” 

“With near-term technical indicators showing a weakened hold on prices by the bulls, one should expect some apples to fall off the tree before silver stabilises and regroup for a resumption of higher prices. A resumed rally should eye 30.72, the long term 50% Fibonnaci marker.”