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

Source Fxstreet
Apr 12, 2024 22:25
  • 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

 

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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