Silver Price Analysis: XAG/USD still targets $21 amid golden cross, overbought RSI


  • Silver outshines gold on Tuesday, hits fresh four-year highs.
  • It trades above all major daily SMAs, within a rising channel.
  • Overbought RSI is a cause of concern for XAG bulls.

Silver (XAG/USD) extended its sharp winning streak into a third straight day on Tuesday, reaching the highest level since August 2016 at $20.43 before retracing slightly to $20.25 levels, where it now wavers.

The white metal rallied nearly 50 cents in a matter of minutes, as stops got triggered on a break above the critical $20 barrier. This marks the strongest advance since the parabolic rise in 2011. Silver is tracking the bullish moves seen in Gold, but the pace of increase is much faster in the industrial metal.

Silver: Daily chart

fxsoriginal

From a technical perspective, despite the upbeat momentum, the price continues to trade within a four-month-long rising channel on the daily chart, having bottomed out in mid-March.

The spot remains on track to test the trendline resistance of the channel, now aligned at $20.96. However, the daily Relative Strength Index (RSI) is in the overbought territory, suggesting a minor correction before the uptrend resumes.

Therefore, any pullbacks will see a test of the resistance-turned-support of the 20 mark, below which last week’s high at $19.48 could be tested.

Further south, Friday’s low and the channel support around $18.93/75 could offer some respite to the bulls.

To conclude, the path of least resistance appears to the upside as long as the price holds above the upward sloping 21-DMA at $18.57. Meanwhile, the golden cross spotted in early July also adds credence to the ongoing advance in the metal.

Silver: Additional levels

XAG/USD

Overview
Today last price 20.30
Today Daily Change 0.41
Today Daily Change % 2.06
Today daily open 19.91
 
Trends
Daily SMA20 18.49
Daily SMA50 17.78
Daily SMA100 16.4
Daily SMA200 16.98
 
Levels
Previous Daily High 19.92
Previous Daily Low 19.26
Previous Weekly High 19.48
Previous Weekly Low 18.7
Previous Monthly High 18.39
Previous Monthly Low 16.95
Daily Fibonacci 38.2% 19.67
Daily Fibonacci 61.8% 19.51
Daily Pivot Point S1 19.47
Daily Pivot Point S2 19.03
Daily Pivot Point S3 18.8
Daily Pivot Point R1 20.13
Daily Pivot Point R2 20.36
Daily Pivot Point R3 20.8

 

 

 

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