Silver Price: Bearish Divergence Signals Retracement on XAGUSD As Price Stays Past $24.00 Level

XAGUSD Price Analysis – August 3

On Monday, Silver inched higher to $25.00 level before falling back marginally as infection cases grew, and a tumultuous budget dispute in the US diverted more funds to safe havens. Over the last eight weeks, the white metal has been in the green, increasing its multiple months’ old uptrend beyond its MAs.

Key Levels
Resistance Levels: $30.00, $28.15, $26.20
Support Levels: $23.78, $22.83 $21.38
XAGUSD Long term Trend: Bullish
On the daily, although its optimistic trajectory maintains the bias positive, some caution should be required as a bearish divergence between the price and the momentum indicators appears to be developing. Unlike the price, in the overbought zone, the RSI did not look for fresh peaks but reversed lower instead.

Even so, over the past few days, XAGUSD has seen good support of around $23.25 mark, though a little lower, so the bears can not take complete control as long as those hurdles stay in effect. In the optimistic scenario where the bulls are holding the control, the price may seek to cross over the level of $25.00 and rally to a psychological level of $26.20.
XAGUSD Short term Trend: Ranging
The Silver rally is pausing as price action has barely succeeded in posting any new highs. The price area of $26.20 is becoming difficult for the momentum to breach. Amidst this, a breakout beyond that level may easily see silver prices reaching out for the $30.00 key level.

Nevertheless, the consolidation unlocks the prospect of a downside in Silver. A close up beneath the level of $23.25 may see a lower correction. The desired positions beyond $24.00 are with extension goals at $24.50 & $25.00 levels. Although the alternative scenario beneath $24.00 is aiming for more downside with targeted levels of $23.25 & $23.00.

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