Silver (XAG/USD) is facing challenges as it tries to build on yesterday’s bounce from the $26.45 support level. Currently, the metal is trading around $27.50-$27.55, below the 23.6% Fibonacci retracement level. The technical indicators suggest a bearish outlook, with resistance seen near the $27.75 level.
If the price manages to break above $27.75, a short-covering rally could push it towards $28.00. Further upside potential lies around $28.50-$28.55, but the 100-day Simple Moving Average at $28.75-$28.80 could act as a strong resistance. Only a move above $29.00 would shift the bias to bullish, targeting $29.45 and $29.75 levels.
On the downside, support is seen at $27.30-$27.25, followed by $27.00. A break below $27.00 could lead to a retest of the multi-month low at $26.50-$26.45, opening the door for further declines towards $26.00, $25.60, and $25.00 levels.
Silver Daily Chart
Silver FAQs
- Investors turn to Silver for diversification and as a hedge against inflation.
- Silver prices are influenced by geopolitical events, interest rates, and the strength of the US Dollar.
- Industrial demand, especially from electronics and solar energy sectors, plays a significant role in Silver prices.
- The Gold/Silver ratio is used to assess the relative valuation between the two metals.
Analysis:
Silver’s current struggle to capitalize on gains indicates a bearish bias in the market. Traders should watch for a break above $27.75 for a potential rally towards $28.00 and beyond. On the downside, a move below $27.00 could trigger further selling pressure towards key support levels. Understanding the technical setup and key price levels is crucial for making informed trading decisions in the Silver market.