Silver Price Analysis: XAG/USD edges higher boosted by a bullish engulfing pattern

• Silver continues its recovery despite broad US Dollar strength and high UST yields.
• A bullish engulfing candle pattern in the XAG/USD daily chart emerged, warranting upside pressure.
• XAG/USD Price Analysis: In the medium term, the white metal is downward biased.

Silver price is staging a comeback after falling to fresh YTD lows at $20.43 a troy ounce and climbs toward the $20.80 area as Wall Street closes. The white metal is posting gains of 1.30% and is trading at $20.89 at the time of typing.

Silver’s rally was capped by fundamental reasons like a strong US Dollar (USD), up 0.32% per the US Dollar Index, and rising UST yields. Despite all that, Silver hit a daily high at $21.00 before retracing some of its gains.

XAG/USD Price Action

Technically speaking, XAG/USD is forming a bullish engulfing candle pattern, which would exacerbate a rally above $21.00, though it remains far from changing Silver’s bias.

The Relative Strength Index (RSI) exited from oversold conditions at 30, sponsored Tuesday’s gains, while the Rate of Change (RoC) portrays that previous selling pressure is waning.

The XAG/USD needs to crack the psychological $21.00 barrier for a bullish continuation. Once done, that would pave the way toward the 20 and 200-day Exponential Moving Averages (EMAs) at $21.82 and $21.89 a troy ounce, respectively, ahead of testing the 100-day EMA at $22.09.

On the flip side, the XAG/USD next support would be $20.43, which, once cleared, would keep sellers in charge, exposing the white metal to new YTD lows. The next floor would be the psychological $20.00, ahead of testing the November 3 daily low of $18.84.

XAG/USD Daily chart

XAG/USD Key technical levels