Silver Price: Buyers Fail to Move Past $18.08 Level As XAGUSD Pulls back Towards Support

XAGUSD Price Analysis – June 24

Silver buyers are having difficulties holding gains beyond the $18 mark this week, whilst the semi-precious metal experienced opposition at $18.08 level early Wednesday and was last observed trading close to $17.72 level per ounce, reflecting a loss of 0.16 percent on the day. The primary danger to silver buyers on a COVID-19 vaccine might be a rapid rebound in the world markets.

Key levels
Resistance Levels: $18.94, $18.37, $18.20
Support Levels: $17.25, $17.00, $16.72
XAGUSD Long term Trend: Bullish
First, on the higher side, a close beyond $18 level may validate a breakout of the bull flag in the current day, as observed on the daily chart. The preceding uptrend is often intensified by the flag breakout. In the scenario of silver, a price increase beyond $20 level is likely to intensify it.

The frequent rejection underneath $18 is indicative of partial bullish exhaustion and implies prospect for a pullback to the ascending trendline support, presently at $17.63 level where the bias may switch itself to bearish if and when prices fall beneath the moving averages 5 and 13 around $17.50 level.
XAGUSD Short term Trend: Ranging
Since late March, Silver has appreciated against the US Dollar. The exchange rate of XAGUSD has already surpassed the level of $17.00. Some upside potential may probably tend to reign in the market, as the exchange rate drops beneath 4-hour moving averages 5 & 13. The price for silver in this scenario may drop to $17.00 mark.

In the meantime, recall that the exchange rate may have to exceed the level of horizontal support situated at $17.63 and $17.25. If the specified support stays, a reversal to the north is likely to occur. In this scenario, the price may get support at $17.63 level from the horizontal support.

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