Silver Price: Surge in Demand Takes XAGUSD Past $30 Amid Reddit Influencers Price Pump

Silver Price: Surge in Demand Takes XAGUSD Past $30 Amid Reddit Influencers Price Pump

XAGUSD Price Analysis – February 1

The white metal’s spot price has surged from under $27 during Monday’s European session into the American morning session past the $30 level, marking a nearly 20% rally on the day. Silver is being driven higher for the 3rd day in a row by a continuation of strong retail demand amid Reddit influencers’ price pump.

Key Levels
Resistance Levels: $32.00, $31.00, $30.00
Support Levels: $27.92, $26.77, $26.00
XAGUSD Long term Trend: Bullish
The XAGUSD price soared to a high of $30 as demand for physical silver continued to rise. On the daily chart, the price completed the formation of a cup pattern and is still above the moving average of 5 and 13. It is also above the ascending trendline support.

Therefore, while the uptrend will likely continue, there is a likelihood of a pullback or consolidation happening. However, a clear break of the $30.00 level becomes necessary for the bulls to further their advance. It should also be noted that the moving average 5 at $26.65 level offers immediate support to the quote.
XAGUSD Short term Trend: Bullish
From a technical point of view, after its retracement from the day’s high of $30.13 level, XAGUSD is gathering more upside momentum as shown on the 4-hour chart. XAGUSD is holding up well after breaking above the $28.90 level and overall above the upside channel support. The moving averages 5 and 13 are skewing upward.

The level at $27.50 might be considered as the nearest support, while the 1st and 2nd resistance are moved up to $30.00 and $31.00 levels respectively. On the one hand, some upside potential could likely continue to prevail in the market within the following trading session.

Note: Learn2.Trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results

 
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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.