Silver Price Analysis: XAG/USD rebounds from $18.20 area, some positive signs emerge
21.07.2022, 16:26

Silver Price Analysis: XAG/USD rebounds from $18.20 area, some positive signs emerge

  • Silver erased losses and rose back above $18.70.
  • The rebound could gain momentum if it breaks $19.00.
  • The primary trend remains bearish; break under $18.00, to open doors to $17.50.

Silver bottomed on Thursday at $18.23, slightly above the YTD low of $18.13. It then rebounded sharply back above $18.50, boosted by a rally in gold prices following a sharp decline in US yields.

XAGUSD rose above the $18.75 area, a relevant short-term support. It peaked at $18.81 hitting a fresh daily high. If the rebound holds, the odds of a more sustainable recovery will rise. The next critical resistance stands around $19.00.

If silver firmly breaks the $19.00 zone, it could point to a double bottom near $18.20 and recover a strong support. The following relevant barrier is seen at the $19.50 area that contains the 20-day Simple Moving Average (intermediate resistance at $19.15).

The daily chart also offers some positive signs for the metal, with MACD making the first bullish cross in two months. Stochastic Oscillators are coming out from oversold levels.

A decline back under $18.50 should add pressure to the $18.20 low, softening the mentioned bullish signs. The break under $18.20 would expose $18.00. The break below could trigger volatility and a potential acceleration toward $17.45.

Silver daily chart

xagusd daily chart

 

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