Silver (XAGUSD) Price: Will There Be Further Price Reduction Below $20.4?

SILVER Weekly Price Analysis – May 19

Should the bulls defend the support level of $20.4, price may reverse and face the resistance levels of $21.4, $22.1 and $23.4. In case the bears penetrate the support level of $20.4 the support level of $19.5 may be reached and there is possibility that $18.8 level may be tested.

XAGUSD Market

Key Levels:

Resistance levels: $21.4, $22.1, $23.4

Support levels: $20.4, $19.5, $18.8

XAGUSD Long-term trend: Bearish

XAGUSD is bearish on the long-term outlook. The sellers’ momentum increases in the Silver market and the support level of $20.4 was tested on 12 May. The support level of $20.4 hold the price and the bears could not break down the mentioned level. The price pulled back to retest $21.4 resistance level. Yesterday, sellers dominates Silver market and the price is declining towards previous low.

Silver is trading below the 9 periods EMA and 21 periods EMA which indicates that bears are dominating the Silver market. Should the bulls defend the support level of $20.4, price may reverse and face the resistance levels of $21.4, $22.1 and $23.4. In case the bears penetrate the support level of $20.4 the support level of $19.5 may be reached and there is possibility that $18.8 level may be tested.

XAGUSD Medium-term Trend: Bearish

XAGUSD is on the bearish movement on 4-hour chart. White metal was trying to experience a bullish reversal at the support level of $20.4 on 13 May with the formation of bullish engulfing candle. The bulls’ pressure increased and push the price to test the resistance level of $21.4. At the moment, sellers are gradually returning to the white metal market.

Silver price is trading slightly below the 9 periods EMA and 21 periods EMA. The Relative Strength Index period 14 is at 46 levels with the signal line displaying a bearish signal.