Silver Price: XAGUSD Bounces off Near Term Lows Around $26.20 Level As Risk Sentiment Improves

XAGUSD Price Analysis – August 24

Silver stays lackluster at around $26.45 level, up 0.25 percent a day, during Monday’s trading session in European markets. The White metal bounces off near-term lows near $26.20 level while prices increased as risk sentiment improves after the U.S. drug regulator approved the use of blood plasma from recovered COVID-19 patients as an alternative for treatment.

Key Levels
Resistance Levels: $30.00, $29.27, $28.15
Support Levels: $25.00, $23.78, $21.38
XAGUSD Long term Trend: Bullish
Silver prices are holding above the near term support level at $26.20 level, with the long-term ascending trendline acting as a further downside vital support. Psychologically, holding beyond $26.20 level would also imply growth in the long-term bottoming prospects of silver.

It now suggests that silver rates ranged from $23.44 level to $29.85 level in a sideways bias. To this end, the rallying of silver prices into the consolidation amid a long-term bottoming effort suggests a bull flag has been formed; an upper side breakout beyond $29.85 level is anticipated.
XAGUSD Short term Trend: Ranging
In the short-term frame, Silver (XAGUSD) ranges on the 4-hour holds within the horizontal channel, validating the $26.20 level bounce upwards. The bulls may seek to test the $29.50-level target which is near to the $29.85-level 7.5-year highs hit last week.

The Relative Strength Index (RSI) of 4 hours points to its midline region at 50, which means there is more room for the upside. Instead, a fall beneath the support level of $26.20 might call for a $25.00 level horizontal support test. To eliminate the near-term bullish momentum, a daily exit is required beneath the moving average of 5 and 13.

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