Silver Price: Overall Trend Suggests Near Term Bearish Bias Beneath the $23.50 Level

XAGUSD Price Analysis – September 28

Silver price is hovering around $23.28 level as markets traded from European to American open for Monday’s trading. The shinning metal earlier surged to $23.50 level but failed to keep the gains. A flight to safety amid growing fears over coronavirus resurgence and its implications on the global economy may keep the demand for Silver limited.

Key levels
Resistance Levels: $30.00, $27.15, $24.50
Support Levels: $22.50, $21.66, $19.65
XAGUSD Long term Trend: Ranging
XAGUSD buyers are once again in medium to long term control, as the price continues to attack near term horizontal resistance zone currently at the $23.50 level. At the level it also coincides with moving average 5, making it a strong barrier for the bulls.

The white metal rebounded from the ascending trendline hurdle at the $22.50 level, a break below could open doors for a test of the horizontal support zone at the $21.66 level. The daily Relative Strength Index (RSI) is recovering towards the north allowing for further upside.
XAGUSD Short term Trend: Bearish
From a short-term technical perspective, the white metal is attempting a recovery after meeting strong support at $21.66 level, and the momentum indicators are painting a gloomier short-term picture as well.

A firm break above the horizontal barrier at $23.50 level could open the door towards a higher mark at the $24.00 level. The next upside target awaits at the level of $24.50 level. The near-term key support comes at the $22.50 level that holds the gate for silver’s further weakness towards the monthly low of $21.66 level.

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