Silver (XAGUSD) Price May Test $21 Support Level Before It Reverse

SILVER Price Analysis – February 03

The formation of more bearish candles is an indication that bears may continue to dominate the Silver market; the price may find support at $21, $19 and $18 price levels. Should the bears defend the support level at $21, price may increase towards the resistance levels at $23, $24 and $25

XAGUSD Market

Key Levels:

Resistance levels: $23, $24, $25

Support levels: $21, $19, $18

XAGUSD Long-term trend: Bearish

On the long-term outlook, XAGUSD is bearish. Last two weeks, the metal was bullish and the price was increasing towards the resistance level of $24. The mentioned level holds the price and the price changed direction. On January 21, the bears gained more pressure and is seen on the daily chart with the formation of strong daily candles that break down the support level at $23 and the price is decreasing towards the support level of $21.

Silver has penetrated the 9 periods EMA and 21 periods EMA downside and the price trading below the two EMAs as a confirmation of bearish movement. The formation of more bearish candles is an indication that bears may continue to dominate the Silver market; the price may find support at $21, $19 and $18 price levels. Should the bears defend the support level at $21, price may increase towards the resistance levels at $23, $24 and $25

XAGUSD Medium-term Trend: Bearish

On the 4-hour chart, XAGUSD is bearish. The bears’ momentum increases after short period of consolidation that took place last week at $24. The former support level of $23 has turned to resistance after strong bearish movement.   Silver price is moving towards the support level at $21.

Last week market closed with bearish movement below the 21 periods EMA and 9 periods EMA. The Relative Strength Index period 14 is below 50 levels with the signal line pointing down to indicate sell signal.

 

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