The silver price is trading near $64.93, with a 1.3% decline recorded overnight. Even though traders pulled back at the beginning of Tuesday’s session, silver remained inside its current daily bullish pattern as the range widened between $64.66 and $66.86.
With price action now contained within the nearby support levels and a distinct resistance barrier, buyers continued defending the lower levels of the price range, while the upward price mobility became limited above the $66.86 mark.
XAGUSD Holds Inside the Daily Bull Flag
A clear break will be what it takes for silver prices to continue the rally higher or to reverse and aim at deeper support. Price action is contained inside a daily bull pattern. Silver trading on a daily chart shows the clear ascent broke out of a downward trendline earlier this month, reaching $66.86 earlier this week.
After experiencing consolidation at these levels, prices settled in a rather tighter consolidation range, which created a price ceiling above this broken line. Prices are currently trading around $64.66 in the bull pattern. Several attempts failed to break below these figures; however, the current configuration will need its integrity preserved as buyer attention returns to protecting the current support structure.
Even so, according to the current analysis of market dynamics, silver prices are closer to a strong support level than a significant resistance barrier, as Cooper confirmed in its latest market commentary.
While trading near the $60 average level as suggested by the daily RSI, the momentum signal is still signaling upward, although with insufficient confirmation. This doesn’t mean that a higher move can’t begin; strong trading volumes along with some movement towards price levels of $66.86 could indicate a clearer pattern.
Weekly Silver Breakout Still Needs Confirmation
Meanwhile, as a broader perspective looking at the weekly chart, XAGUSD currently tests the outer bounds of falling trend resistance with failed attempts to maintain the levels.
After pushing briefly through, price action came in for rejection, as a weekly close in favor of continuation is not yet clear from prices’ performance.
Andy Heilman supported these findings, confirming this was “the time prices struggled to push up on those levels.” This can lead to another retest at the level broken, and the direction prices choose could clear out most of these doubts.
The negative MACD on the weekly chart shows signs of contraction, with bearish bars having their sizes diminished.
Simultaneously, the stochastic reading on a similar timescale hints at an ongoing upward price journey. These signs do indicate a decline in the intensity of sellers; however, definitive evidence for this trend requires further market action confirmation.
While some signs may look favorable, a complete reversal in trend for this outlook is not guaranteed. The broader demand structure at around the0 level on a weekly chart currently holds, as buyers did not manage to push prices to these levels even after a few test sessions.
XAGUSD Price Faces Clear Directional Levels
At levels of $66.86, prices would see their best confirmation for continuing this bull formation of the daily pattern. From $71.31, previous lows could now be tested.
Even from those levels, there are greater targets above, in particular the psychological price range of $77.00 if prices continue to break those resistance thresholds, but, as noted before, it requires a series of clear breakouts on increased volume.
On the negative side, the $64.66 level offers current support, but a clear weekly close beneath this could invite further pressure downward, particularly $59.63, and later potential targets could rise to $54.78, where buyers’ interest has been observed before during prices’ previous ascension. These clear levels allow for predictable trading plans.
Be the first to comment