Silver Price Analysis: XAG/USD plummets after hitting three-year high, stays bullish

FXStreet
Updated Apr 15, 2024 24:25
Mitrade

■Silver pulls back sharply from its highest point since February 2021, suggesting the rally might be overextended.


If it breaks below key supports at $28.28 and $28.00, further declines to $27.54 and $27.00 could occur.


A recovery above $28.00 could reignite bullish sentiment, aiming for previous highs and resistances.


Silver's price tumbled on Friday’s session after refreshing three-year highs reached in February 2021. The grey metal peaked at $29.79 before plunging close to $2.00. The XAG/USD traded at $27.84, down 2.01%.


XAG/USD Price Analysis: Technical outlook


Silver is bullishly biased despite retreating sharply after spiking toward the $29.70s area. However, achieving a daily close below the June 10, 2021, high turned support at $28.28 and clearing below $28.00 has opened the door for a pullback. Therefore, XAG/USD's first support would be the April 10, low at $27.54, ahead of challenging the $27.00 figure. Further losses are seen on May 5, 2023, with high turned support at $26.12.


On the other hand, strong bullish momentum remains, and if buyers reclaim $28.00, that could be put back into the table, the continuation of the rally. The first supply zone would be June 10, 2021, high at $28.28, before testing May 18, 2021, at $28.74. Once surpassed, the next stop would be the year-to-date (YTD) high at $29.79.


XAG/USD Price Action – Daily Chart



XAG/USD


Overview



Today last price

27.88

Today Daily Change

-0.58

Today Daily Change %

-2.04

Today daily open

28.46

 

Trends



Daily SMA20

25.95

Daily SMA50

24.25

Daily SMA100

23.91

Daily SMA200

23.57

 

Levels



Previous Daily High

28.5

Previous Daily Low

27.77

Previous Weekly High

27.5

Previous Weekly Low

24.75

Previous Monthly High

25.77

Previous Monthly Low

22.51

Daily Fibonacci 38.2%

28.22

Daily Fibonacci 61.8%

28.05

Daily Pivot Point S1

27.98

Daily Pivot Point S2

27.51

Daily Pivot Point S3

27.26

Daily Pivot Point R1

28.71

Daily Pivot Point R2

28.97

Daily Pivot Point R3

29.44

 

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