Silver Price: XAGUSD Sustains Upside Rally Beyond $27.00 on Stimulus Optimism

XAGUSD Price Analysis – February 8

The white metal managed to recover some of the losses on Friday and has continued to rise during the European session on Monday. Silver (XAGUSD) is building on Friday’s rebound above $27.00 as the US dollar remains pressured while the $1.9T stimulus optimism favors the bulls.

Key Levels
Resistance Levels: $30.00, $28.90, $27.92
Support Levels: $26.00, $25.00, $24.00
XAGUSD Long term Trend: Ranging
The technical analysis on the daily chart shows that Silver (XAG) is advancing to test a minor resistance around $27.50. If the buyers find a foothold above that level, the next powerful hurdle at $27.92 could be put to test. The daily Relative Strength Index (RSI) holds well above the midline, suggesting that the bullish bias remains intact.

However, a clear break of the $27.50 level, comprising the aforementioned horizontal resistance line, becomes necessary for the bulls to step in. It should also be noted that the moving average 5 level of $27.20 level offers immediate resistance to the quote.
XAGUSD Short term Trend: Ranging
On the 4 hour chart, the latest XAGUSD advance may attack the top surrounding the $27.50 level before targeting the $28.90 horizontal resistance level. Though, the 4-hour channel resistance line at the $27.50 level will challenge the bulls, a break of which will quickly direct the quote towards the monthly high of $30.31 level.

Meanwhile, a downside break of moving average 13, at $26.65 level now, will fetch the commodity prices to the channel support line, currently around $26.00 level. The preferred scenario would be a long position beyond the $26.77 level with targets at $27.50 & $28.90 levels in extension.

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