The penetration of the resistance level at $27 will raise the price of silver to $29 and $35 price level. A breakout at the support level of $26 by the bears’ pressure shall reduce the cost to $23 and $19 price level.
XAGUSD Trend that is long-term
Recently, there was clearly a price surge that favors the bulls and pushes the price to achieve a high of $29 resistance degree. The bulls failed to break above this level, saw bears exerting force that is downward the Silver price. The cost was pushed into a confluence zone of support and opposition degree of $27 and $26 respectively. The movement that is ranging the mentioned zone is becoming tighter as the bulls’ and the bears’ momentum is getting weaker.
The daily chart above highlights that the price action continues to be between the 9 periods EMA and 21 periods EMA from the long term perspective. Possibly indicating that consolidation might continue until there is a breakout. The penetration of the resistance level at $27 will increase the price to $29 and $35 price level. A breakout at the support level of $26 by the bears’ pressure shall reduce the cost to $23 and $19 price level. Nonetheless, the Strength that is relative Index 14 with the signal line bending down at 50 amounts possibly indicating a sell signal provided support level of $26 does maybe not hold.
XAGUSD Medium-term Trend: Ranging
The motion that is ranging 2-3 weeks ago in the Silver market remains as the movement is becoming narrower; which means that the buyers’ and sellers’ momentum is becoming lower. A degree that is key of now remains at the psychological amount of $26. In case sellers can break below just mentioned level, attempting to sell pressure may increase with $24 being the next level of great interest.
The 9 periods EMA remains interlocked with 21 periods EMA indicating that consolidation is in progress. Placing a Buy Stop at $27.42, Stop Loss at $26.56, and Take Profit at $28.49 price level shall be recommended. The penetration of the resistance level at $27 will raise.