Silver (XAGUSD) Price: Bulls Are Gathering Momentum to Dominate Market

SILVER Weekly Price Analysis – June 16

The breakdown of $19 support level may reduce the price to $17 and $16 levels. An increase in the bulls’ momentum may leads to the breaking up of $21 resistance level which may increase to $22 and $23 resistance levels.

XAGUSD Market

Key Levels:

Resistance levels: $21, $22, $23

Support levels: $19, $17, $16

XAGUSD Long-term trend: Bearish

XAGUSD is bearish on the long-term outlook. The white metal was on the ranging movement within $21 and $22 levels last week. The bearish momentum increased and a daily bearish candle emerged. The support level of $21 was broken downside and $20 level was tested. The price bounced up and the price action is in the process of producing a short “W” chart pattern.  This is a bullish signal.

Silver is trading below the 9 periods EMA and 21 periods EMA at close contact. The fast moving Average (9 periods EMA) is interlocked with the slow moving Average (21 periods EMA). The breakdown of $19 support level may reduce the price to $17 and $16 levels. An increase in the bulls’ momentum may leads to the breaking up of $21 resistance level which may increase to $22 and $23 resistance levels.

XAGUSD Medium-term Trend: Bullish

XAGUSD is on the bullish movement on 4-hour chart. The price action is producing a bullish chart pattern called short”W”. It is an indication that bulls may dominate the market next week. The Price may increase towards $22 price level when the bulls gain more pressure.

Silver price is trading above the 9 periods EMA and 21 periods EMA. The Relative Strength Index period 14 is at 52 levels with the signal line displaying bearish direction which may be a pullback.