SILVER Weekly Price Analysis – March 21
The breakout above the two dynamic resistance level may push the coin to $27 price level which may extend to $29 and $31 price level. Further bearish pressure will lead to the breakdown of $25 price level, then, $24 and $22 may be the bears’ target.
Resistance levels: $27, $29, $31
Support levels: $25, $24, $22
XAGUSD Long-term trend: Ranging
On the long-term outlook, XAGUSD continues its bearish movement. Early last week, there was a fake breakout of the Silver at the support level at $25; because the daily candle did not close below the mentioned level but rather resulted to the formation of a bullish engulfing candle in the daily chart. A bullish engulfing candle indicates bullish reversal; further pressure from the Bulls will make Silver price to rise above the dynamic resistance level. At the moment the price is ranging within the two dynamic resistance level, in between the resistance level of $27 and support level of $25.
The 21 periods EMA and 50 periods EMA is flat horizontally showing no direction with the price trading in between the two indicate consolidation movement in the Silver market. The breakout above the two dynamic resistance level may push the coin to $27 price level which may extend to $29 and $31 price level. Further bearish pressure will lead to the breakdown of $25 price level, then, $24 and $22 may be the bears’ target. However, the Relative Strength Index period 14 is at $50 level with the signal line exhibiting no specific market direction.
XAGUSD Medium-term Trend: Ranging
On the daily chart, XAGUSD is on the sideways movement. The bears’ momentum remains weak likewise the Bulls pressure; this made it possible for the Silver price to continue consolidating over and around the two EMAs. On the March 12, the Bears tried to push the Silver price below $25 level but the Bulls opposed the movement and returned the price into the ranging region.
Last week market closed with Bullish candle hovering over the 21 periods EMA and 9 periods EMA. The Relative Strength Index period 14 is above 50 with the signal line pointing up to indicate buy signal.