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Silver Price Analysis: XAG/USD collapses below 50-DMA as surrenders $29.00

FXStreetJun 26, 2024 12:19 AM

  • Silver drops to $28.90, under 50-day MA, after Fed's Bowman's hawkish remarks.


  • Bearish pattern evident, with RSI suggesting further downside.


  • Support levels: $28.74 (May 18 high), $28.28 (June 10 high), $28.00, $26.82 (100-DMA).


  • Resistance points: $29.16 (50-DMA), $31.54 (June 7 high), $32.00, $32.51 (YTD high).



Silver price collapsed on Tuesday amid a strong US Dollar, sponsored by hawkish comments by Fed Governor Michelle Bowman. Although US Treasury yields were unchanged, the Greenback registered moderate gains, which weighed on the grey metal. The XAG/USD trades at $28.90, below its 50-day moving average (DMA) for the first time since March 1.



XAG/USD Price Analysis: Technical outlook


The grey metal formed a ‘bearish engulfing’ chart pattern last week, which opened the door for further downside. Momentum favors sellers, as shown by the Relative Strength Index (RSI), which stands bearish. This suggests that Silver could extend its losses.


Hence, the XAG/USD's first support would be the May 18, 2021, high turned support at $28.74, ahead of challenging June 10, 2021, high at $28.28. Key support levels lie underneath, like the $28.00 figure, followed by the 100-DMA at $26.82.


Conversely, if XAG/USD resumes its uptrend, the next resistance level would be the 50-day moving average (DMA) at $29.16. Once surpassed, the next stop is the June 7 high of $31.54. Clearing this level would target $32.00 before challenging the year-to-date (YTD) high of $32.51.


XAG/USD Price Action – Daily Chart

XAG/USD

Overview

Today last price

28.91

Today Daily Change

-0.67

Today Daily Change %

-2.27

Today daily open

29.58

 

Trends

Daily SMA20

30.11

Daily SMA50

29.16

Daily SMA100

26.81

Daily SMA200

24.98

 

Levels

Previous Daily High

29.73

Previous Daily Low

29.35

Previous Weekly High

30.86

Previous Weekly Low

28.93

Previous Monthly High

32.51

Previous Monthly Low

26.02

Daily Fibonacci 38.2%

29.58

Daily Fibonacci 61.8%

29.49

Daily Pivot Point S1

29.38

Daily Pivot Point S2

29.17

Daily Pivot Point S3

29

Daily Pivot Point R1

29.75

Daily Pivot Point R2

29.93

Daily Pivot Point R3

30.13
Reviewed byTony
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