Silver Price Analysis: XAG/USD tumbles and remains bearish below $29.00

Silver drops influenced by Fed's Core PCE Price Index anticipation.
Last week's bearish engulfing pattern and RSI hint at more declines.
Support levels: $28.28 (June 10 high), $28.00, $27.01 (May 8 low), $26.82 (100-DMA).
Resistance points: $29.17 (50-DMA), $31.54 (June 7 high), $32.00, $32.51 (YTD high).

Christian Borjon Valencia FXStreet

Silver price fell on Wednesday as market participants awaited the release of the Fed’s preferred inflation gauge, the core Personal Consumption Expenditure (PCE) Price Index, after releases from major countries hinted at a reacceleration of inflation. The XAG/USD spot price is at $28.76, down by 0.46%.

XAG/USD Price Analysis: Technical outlook

The grey metal formed a ‘bearish engulfing’ chart pattern last week, indicating potential for further downside. Momentum support sellers, as measured by the bearish Relative Strength Index (RSI), suggest that silver could extend its losses.

Therefore, XAG/USD's first support is the June 10, 2021, high at $28.28. A breach of the latter will expose the psychological $28.00 mark, followed by the May 8 swing low of $27.01, ahead of the 100-DMA at $26.82.

Conversely, if XAG/USD resumes its uptrend, the next resistance level would be the 50-day moving average (DMA) at $29.17. Surpassing this level would target the June 7 high of $31.54. Clearing this would aim for $32.00 before challenging the year-to-date (YTD) high of $32.51.

XAG/USD Price Action – Daily Chart

XAG/USD

Overview
Today last price	28.77
Today Daily Change	-0.14
Today Daily Change %	-0.48
Today daily open	28.91

Trends
Daily SMA20	29.95
Daily SMA50	29.18
Daily SMA100	26.88
Daily SMA200	25.01

Levels
Previous Daily High	29.67
Previous Daily Low	28.84
Previous Weekly High	30.86
Previous Weekly Low	28.93
Previous Monthly High	32.51
Previous Monthly Low	26.02
Daily Fibonacci 38.2%	29.16
Daily Fibonacci 61.8%	29.35
Daily Pivot Point S1	28.61
Daily Pivot Point S2	28.32
Daily Pivot Point S3	27.79
Daily Pivot Point R1	29.44
Daily Pivot Point R2	29.96
Daily Pivot Point R3	30.26

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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