Silver Price Analysis: XAG/USD test key resistance levels amid uptrends
- Silver dips to $26.54, down 0.43%; 'dragonfly doji' hints at possible uptrend.
- Finds support at 61.8% Fibonacci level ($26.41); crossing $27.00 could boost bullish momentum.
- Downside risk if below May 2 low of $26.02, aiming for 50-day MA at $25.79.
Silver price uptrend continued during the week despite registering losses of around 2.40%. Nevertheless, May 2’s price action forming a ‘dragonfly doji,’ a bullish candle, alongside technical indicators suggesting that the grey metal remains bullish, could pave the way for a recovery. At the time of writing, XAG/USD trades at $26.54, down 0.43%.
XAG/USD Price Analysis: Technical outlook
As previously mentioned, Silver remains bullishly biased after posting an impressive rally that passed the $29.00 mark. It appears to have bottomed out at around the 61.8% Fibonacci retracement at $26.41, though buyers had been unable to test the $27.00 mark.
Although momentum had shifted bearishly, with the Relative Strength Index (RSI) diving below the 50-midline, upside risks remain. If buyers reclaim the $27.00 figure, that could reignite buying pressure and pave the way to challenge the next resistance level seen at the 38.2% Fibo retracement at $27.70. Once surpassed, the next step would be the 23.6% Fibo retracement at $28.49.
Nevertheless, with the RSI standing at bearish territory, sellers need to push prices below the May 2 low of $26.02. Once cleared the next stop would be the 50-day moving average (DMA) at $25.79, followed by the 78.6% Fibo retracement at $25.50.
XAU/USD Price Action – 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.
