Silver (XAGUSD) Price Breaks Down $21 Support Level Targeting $19 Level

SILVER Weekly Price Analysis – May 12

Bearish momentum may continue and the support level of $19 may be reached, which may extend to $18 and $17 support levels. In case the support level of $19 holds, bullish trend may commence and it may reach the $21, $22 and $23 resistance levels.

XAGUSD Market

Key Levels:

Resistance levels: $21, $22, $23

Support levels: $19, $18, $17

XAGUSD Long-term trend: Bearish

XAGUSD is bearish on the long-term outlook. The sudden price reversal that took place at the resistance level of $26 on 19 April was against the expectation of many traders. Many traders belief that Silver price will increase above $26 level but the Dollar strength increased and the Silver price dropped. The price has penetrated downside the former support level of $23, $22 and $23. Silver is currently at the demand zone of $21.

The fast moving Average (9 periods EMA) has cross over the slow moving Average (21 periods EMA) downside. Silver is trading below the 9 periods EMA and 21 periods EMA which is an indication that bears’ momentum is increasing in the Silver market. Bearish momentum may continue and the support level of $19 may be reached, which may extend to $18 and $17 support levels. In case the support level of $19 holds, bullish trend may commence and it may reach the $21, $22 and $23 resistance levels.

 XAGUSD Medium-term Trend: Bearish

XAGUSD is on the bearish movement on 4-hour chart. The interruption of the bears in the Silver market at the $24 price level has made the metal to remain under the bears’ pressure. The bears gained more pressure after a short period of consolidation at the mentioned resistance level. The price declines to break down the support level of $21.

Silver price is trading below the 9 periods EMA and 21 periods EMA. The Relative Strength Index period 14 is at 24 levels with the signal line displaying strong bearish direction.