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Silver Price Analysis: XAG/USD sinks below $30.00 as bearish-engulfing pattern looms

  • Silver declines 3.86% sparked by firm US Treasury yields and a strong US Dollar.
  • Technical outlook shows a bearish engulfing pattern with RSI turning bearish, indicating potential further losses.
  • Key support levels: 50-DMA at $29.09, $29.00, and MTD low of $28.66, with deeper support at 100-DMA of $26.60.
  • Key resistance levels: June 7 high at $31.54, $32.00, and YTD high of $32.51.

Silver price dropped sharply and snapped two days of gains amid firm US Treasury bond yields and a strong US Dollar. The grey metal trades at $29.53 , down 3.86%

XAG/USD Price Analysis: Technical outlook

Silver is still bullish biased though joining today and yesterday price action completed a ‘bearish engulfing,’ chart pattern. Momentum shifted in sellers’ favor as the Relative Strength Index (RSI) turned bearish and opened the door for further losses.

That said, XAG/USD's first support would be the 50-day moving average (DMA) at $29.09; it will expose $29.00. Breaching this level could lead to the MTD low of $28.66, ahead of a potential drop towards the 100-DMA at $26.60.

On the flip side, if XAG/USD resumes its uptrend, the next resistance level is the June 7 high of $31.54. Clearing this level would target $32.00 before challenging the year-to-date (YTD) high of $32.51.

XAG/USD Price Action – Daily Chart

XAG/USD

Overview
Today last price29.55
Today Daily Change-1.18
Today Daily Change %-3.84
Today daily open30.73
 
Trends
Daily SMA2030.26
Daily SMA5029.11
Daily SMA10026.68
Daily SMA20024.92
 
Levels
Previous Daily High30.79
Previous Daily Low29.71
Previous Weekly High30.26
Previous Weekly Low28.66
Previous Monthly High32.51
Previous Monthly Low26.02
Daily Fibonacci 38.2%30.38
Daily Fibonacci 61.8%30.12
Daily Pivot Point S130.03
Daily Pivot Point S229.33
Daily Pivot Point S328.95
Daily Pivot Point R131.11
Daily Pivot Point R231.49
Daily Pivot Point R332.2

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
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