Silver (XAGUSD) Price: Bulls Are Gathering Momentum to Take Over

SILVER Weekly Price Analysis – May 05

Should the bears push the price to break down $22 level, it may descend to $21 and $20 price level. Inability to break down the support level of $22, by the bears, the price may reverse and increase towards the resistance level of $23, $24 and $25.

XAGUSD Market

Key Levels:

Resistance levels: $23, $24, $25

Support levels: $22, $21, $20

XAGUSD Long-term trend: Bearish

XAGUSD is bearish on the long-term outlook. There was a short consolidation period at $25 resistance level last three weeks. Silver struggled to experience a fake breakout at the resistance level of $25 but the bears opposed the breakout at $26 level. The price decline when sellers exerted more pressure especially at the FOMC roll news. $24 former support level was broken downside and it is currently pulling back at $22 level.

Silver is trading below the 9 periods EMA and 21 periods EMA with the slow moving EMA below the fast moving EMA. That means the price is under the bears’ pressure.  Should the bears push the price to break down $22 level, it may descend to $21 and $20 price level. Inability to break down the support level of $22, by the bears, the price may reverse and increase towards the resistance level of $23, $24 and $25. The relative strength index period 14 is at 37 levels with the signal line bending up to indicate buy signal.

 XAGUSD Medium-term Trend: Bullish

XAGUSD is on the bullish movement on 4-hour chart. The metal was under the bears’ pressure last week, the price was at the support level of $22 before it was interrupted by the bulls. On May 04, a bullish engulfing candle emerges which indicate an uptrend pressure. The price may reverse and broke up the resistance level of $23. The price is increasing towards the resistance level of $23.

Silver price is trading above the 9 periods EMA and 21 periods EMA. The Relative Strength Index period 14 is at 59 levels with the signal line displaying bullish direction.