Silver price bounces off two-month-lows hit at $22.68, rallies sharply, and claims the 200-day Exponential Moving Average (EMA) at $22.82 and the $23.00 psychological figure on Friday’s mid-North American session. Although the white metal is gaining more than 1.90%, it is set to finish the week with losses of 2.89%. At the time of writing, XAG/USD is trading at $23.15.
Even though economic data from the United States (US) justifies another rate hike by the US Federal Reserve (Fed). Therefore, US Treasury bond yields are rising, underpinning the greenback. However, the XAG/USD ignored most factors that could drag the price low and rip higher, eyeing the 100-day Exponential Moving Average (EMA) at $23.47.
Nevertheless, the Relative Strength Index (RSI) is in bearish territory, warranting further Silver weakness, while the 3-day Rate of Change (RoC) has yet to reach neutral levels. Therefore, additional downside could be expected.
However, if XAG/USD clears the 100-day EMA, it would face sold resistance at the confluence of the 20 and 50-day EMAs at around $23.97-24.00. Once broken, the next supply zone would be the $25.00 mark.
On the flip side, and the path of least resistance in the near term, the XAG/USD first support would be $23.00, followed by $22.68, the current week’s low. A beach of the latter will expose the March 21 swing low of $22.14.
© 2000-2023. All rights reserved.
This site is managed by Teletrade D.J. Limited 20599 IBC 2012 (First Floor, First St. Vincent Bank Ltd Building, James Street, Kingstown, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at email@example.com.