XAG/USD, which was rejected above $22.00, falls to the $21.40 area

  • Silver’s rally fails at $22.05 and falls back to $21.50.
  • The precious metal has hit a key resistance near $22.00.
  • With the RSI at overbought levels, some consolidation is likely.

Silver The uptrend in prices from early November lows in the $19.00 range was halted at a five-month high of $22.05 on Friday before falling back into the mid-$21.00 range. However, on the weekly chart, the pair is on track to rally nearly 5%.

The precious metal has hit a key resistance near $22.00 where the 50% Fibonacci The retracement level of the April-September downtrend and the June 16, 17, and 21 highs are holding the bulls back.

Additionally, the pair has reached overbought levels on the hourly and daily charts, suggesting that some consolidation or even a moderate pullback is still consistent with the possibility of further appreciation.

On the upside, above the mentioned $22.00, the pair could target the June 3rd and June 6th highs of $22.50 before targeting the 61.8% retracement of the mentioned downtrend at $23.00 .

Bearish attempts so far are being held above the 200-day ma, which now stands at $21.45, with the next potential support levels at $20.95 (10th October low) and $20.35 (7th November low). ).

XAGUSD daily chart

Technical levels to watch

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