SILVER Weekly Price Analysis – May 23
Should the bears increase their momentum, the support level at $26 may be tested and penetrated to expose the price to $23 and $22 price levels. In case the support level of $26 holds, the price may increase to the resistance level at $27, $28 and $29.
Resistance levels: $27, $28, $29
Support levels: $26, $23, $22
XAGUSD Long-term trend: Bullish
XAGUSD is bullish on the long-term outlook. At the early stage of the Silver market, the price obeyed the command of the bulls as the bulls hold unto the Silver market tightly. Silver price increased towards the resistance level of $27. On May 18, a daily bullish candle turns to an inverted Pin Bar candle which represent a bearish signal. The metal decreases towards the support level of $26.
The price is making attempt to cross the 9 periods EMA and 21 periods EMA downside as an indication that the bears are trying to take over the Silver market. Should the bears increase their momentum the support level at $26 may be tested and penetrated to expose the price to $23 and $22 price level. In case the support level of $26 holds, the price may increase to the resistance level at $27, $28 and $29. The price is trading above the 9 periods EMA and 21 periods EMA at close contact which indicate the pressure of the sellers.
XAGUSD Medium-term Trend: Bearish
XAGUSD is bearish on the 4-hour chart. Silver price break up the resistance level of $27 on May 17 and the price is increasing towards the $28 price level. The sellers interrupted the bulls’ momentum with the formation of bearish engulfing candle and the price decline to break down the support level of $27 after short consolidation.
Silver price is trading below the 9 periods EMA and 21 periods EMA. The Relative Strength Index period 14 is at 40 levels with the signal line pointing up to indicate buy signal which may be a pullback.