Silver (XAGUSD) Price Locates Support Level at $20 and Bounces Up

Updated:

SILVER Weekly Price Analysis – May 26

Further increase in the Silver price is highly envisaged. When the Bulls momentum increase it may break up the $21 resistance level and the price may increase to $22 and $23 resistance levels.

XAGUSD Market

Key Levels:

Resistance levels: $21, $22, $23

Support levels: $20, $19, $18

XAGUSD Long-term trend: Bullish

XAGUSD (Silver) is bullish on the long-term outlook. The Bears were able to push the Silver price down to the $20 support level after it broke down levels such as $22 and $21. The bears’ momentum seems to getting weak when the level is reached.   Strong daily bullish candle formed and the price bounces towards the dynamic resistance levels. The resistance level of $21 is tested. At the moment, price is trying to break up the two dynamic resistance levels.

The Silver price is struggling to break up the 21 periods EMA and the 9 periods EMA; which implies that bullish momentum is increasing. The relative strength index period 14 is at 43 levels with the signal lines pointing upside to connote buy signaling. Further increase in the Silver price is highly envisaged. When the Bulls momentum increase it may break up the $21 resistance level and the price may increase to $22 and $23 resistance levels.

XAGUSD Medium-term Trend: Ranging

XAGUSD is ranging on the daily chart. The Silver price bounces up at the support level of $20 on May 13. It seldomly increases towards the resistance level of $21, it broke it up to test 422 resistance level. The bulls lose their momentum, then further increase was interrupted. In the same way, the support level of $20 holds and the price commences a ranging movement.

The Silver price is slightly above the 9 periods EMA and 21 periods EMA. The relative strength index period 14 is at 55 levels with the signal lines pointing up to indicate buy signal. In case the Bears gain more pressure the price may return to the previous low of $21 level.

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Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.