Silver Price Analysis: XAG/USD retreats as shooting star looms, sellers eye $28.00
■Silver retreats from a three-week high reached at $28.74.
■Momentum favors bulls in the medium term; but shooting star looming paves the way for a retracement.
■Uptrend to resume with buyers clearing $28.74.
Silver prices reversed on Friday amid high US Treasury yields and a stronger US Dollar. The grey metal slipped 0.48% and exchanges hands at around $28.19, at the time of writing.
XAG/USD Price Analysis: Technical outlook
From a technical perspective, Silver is still upward biased, though the formation of a ‘shooting star,’ can pave the way for a pullback. Even though momentum favors bulls, as depicted by the Relative Strength Index (RSI) with readings between 60-70, its slope aims downwards.
Therefore, XAG/USD is bearishly biased in the short term. However, sellers will face solid support levels, like the $28.00 psychological level. Once cleared, the non-yielding metal could dive toward the 38.20% Fib retracement at $27.70, confluence with the April 62 high.
On the other hand, a bullish resumption could occur, if buyers reclaim the current week high of $28.76, followed by the $29.00 mark. A breach of the latter and buyers could challenge the year-to-date (YTD) high at $29.79.
XAG/USD Price Action – Daily Chart
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