Silver Price Analysis: XAG/USD tanks towards $31.00 as ‘evening star’ emerges

Source Fxstreet
May 30, 2024 20:08
  • Silver prices tumbled even though US bond yields fell.
  • The formation of an ‘evening star’ can pave the way to challenge lower prices.
  • XAG/USD to consolidate around $31.00 if buyers hold firm around the latter.

Silver prices dropped from daily highs that had reached around $32.09 earlier, even though US Treasury bond yields tumbled. A late recovery of the US Dollar, trimming some of its losses, weighed on the grey metal, which is down more than 2.80%. At the time of writing, the XAG/USD trades at $31.06 and falls to three-day lows.

XAG/USD Price Analysis: Technical outlook

After rallying toward the year-to-date (YTD) high of $32.51, the non-yielding metal dipped to $30.05 before launching another attack toward the YTD highs. However, bullish momentum seems to be fading, as depicted by the Relative Strength Index (RSI), which, despite remaining above the 50-midline, aims lower, showing sellers’ strength. Alongside that, the formation of an ‘evening star’ hints that a further downside is seen.

 If XAG/USD drops below $31.00, further losses lie beneath. The next support would be the May 24 latest cycle low of $30.05, followed by the April 12 high of $29.79. Once cleared, the next stop would be the $29.00 psychological level.

On the flip side, if buyers keep silver spot prices above $31.00, that would pave the way for consolidation, around the $31.00/$32.00 range.

XAG/USD Price Action – Daily Chart

XAG/USD

Overview
Today last price 31.11
Today Daily Change -0.86
Today Daily Change % -2.69
Today daily open 31.97
 
Trends
Daily SMA20 29.51
Daily SMA50 27.91
Daily SMA100 25.54
Daily SMA200 24.42
 
Levels
Previous Daily High 32.3
Previous Daily Low 31.6
Previous Weekly High 32.51
Previous Weekly Low 30.05
Previous Monthly High 29.8
Previous Monthly Low 24.75
Daily Fibonacci 38.2% 31.87
Daily Fibonacci 61.8% 32.04
Daily Pivot Point S1 31.62
Daily Pivot Point S2 31.26
Daily Pivot Point S3 30.92
Daily Pivot Point R1 32.32
Daily Pivot Point R2 32.66
Daily Pivot Point R3 33.02

 

 

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