Silver Price: XAGUSD Bulls Have Eyes Toward Mid $28.00 Region on Softer US Dollar

XAGUSD Price Analysis – May 9

Silver (XAG) surged to two-month highs of $27.67 to close at $27.45 on Friday, gaining nearly 20 percent for the week. As XAGUSD surges higher, buyers have eyes toward the mid $28 region. A major disappointment on the headline NFP number could explain Silver’s towards the end of the prior week on a softer dollar.

Key Levels
Resistance Levels: $30.13, $28.90, $27.92
Support Levels: $27.00, $26.00, $25.00
XAGUSD Long term Trend: Ranging
The white metals moving averages 5 and 13 have almost a bullish pattern, but the trend does not necessarily mean a price spike. Silver is currently opening from 0.53 percent higher on the day at $27.45, and the white metals relative strength index (RSI) almost reached the 70 bullish lines, but the 70 lines do not necessarily imply an overbought region but the beginning.

To validate a bullish turnaround, XAGUSD must fall below the recent high of $27.67. For the bears, the $26.65 level is the one to beat. Since the beginning of April, that level has acted as a solid ceiling for the buyers on some occasions. As long as prices remain within the prior week’s higher trading range of $26.65 to $27.67, the initial bias may remain neutral.
XAGUSD Short term Trend: Bullish
On the 4-hour chart, spot silver is gaining further upside momentum from a technical standpoint. After breaking above the $27.00 mark and overall above the short-term MA 5 support, XAGUSD is holding up well. The 13 moving average is skewed upward.

The nearest support level is $27.00, while the first and second resistance levels have been pushed up to $27.92 and $28.90, respectively. On the one hand, some upside capacity in the market is likely to persist throughout the subsequent trading session.

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