Silver Price Analysis: XAG/USD rises 2.81%, tests key resistance, eyeing $22.00
- Silver rebounds from a near $20.80 low, surging above $21.50, undeterred by positive US economic reports.
- A critical resistance at $21.60/70 looms, with a breakthrough potentially paving the way to $22.00.
- Downward path highlights supports at $21.00 and a 7-month low of $20.69, with a possible dip to $19.90
Silver price (XAG/USD) stages a recovery after bottoming at around the $20.80 area during the last three days, rising back above $21.50, posting gains of 2.81%. An upbeat report from the United States (US) was not a reason to stop Silver’s climb on Friday.
The daily chart portrays the XAG/USD as neutral to downward biased despite registering solid gains. At the time of writing, Silver is testing the bottom of an upslope support trendline turned resistance, which passes at around $21.60/70, which, if broken, could sponsor another leg-up for XAG/USD towards the $22.00 mark. Once cleared, the next stop would be the 20-day Exponential Moving Average (EMA) at $22.50.
Conversely, and the path of least resistance, the XAG/USD first support would be $21.00, followed by the recent 7-month low of $20.69. A decisive break, Silver’s could test the year-to-date (YTD) low reached on March 2023 at around $19.90.
XAG/USD Price Action – Daily chart
XAG/USD Technical Levels