On Thursday, the advancement of silver came to a halt as the grey metal recorded marginal losses of 0.04%, remaining relatively unchanged in trading activity. Factors such as jobs data, mixed housing indicators, and a lack of strength in the manufacturing and industrial sectors contributed to a boost in US yields and the strengthening of the Greenback. Consequently, silver experienced a decline, with its price stabilizing around $29.60 at the time of reporting.
XAG/USD Price Analysis: Technical Outlook
Although silver’s uptrend persists, Thursday’s price action formed a ‘doji,’ indicating a balance between buyers and sellers within the realm of price action. Notably, there is a looming potential formation of a ‘double top.’ However, momentum leans towards the bullish side, as evidenced by the Relative Strength Index (RSI) continuing its upward trajectory, albeit approaching overbought conditions.
Should XAG/USD maintain levels above $29.00, buyers may retain optimism for testing the year-to-date (YTD) high of $29.79. A breakthrough above this level could lead to a challenge of the February 2013 high at $32.15, followed by the October 2012 high of $35.40.
Conversely, a scenario where sellers push silver’s price below the $29.00 threshold may prompt a pullback towards the May 18, 2021, high, now turned support, at $28.75, with subsequent support levels at $28.00 and $27.00 respectively.
