SILVER Weekly Price Analysis – May 12
The support level at $14 may be the target for the metal this week and there is a possibility for the price to bounce in case the Bulls defend the level.
Resistance levels: $15, $17, $18
Support levels: $14, $11, $9
XAGUSD Long-term trend: Bearish
On the long-term outlook, XAGUSD continues its bearish movement. The Bearish movement continues last week as predicted. There was a breakout at the lower trend line of the triangle and the Bears exerted more pressure last week and the price moved towards $14 level. The Bears are still fully in control of the Silver market. The price may reach the $14 level this week as long as the Bears maintain or increase their pressure.
Silver price continues trading below the 21 periods EMA and 50 periods EMA. As evidence of the increase in the Bears’ momentum; the distance between the metal and the two EMAs are increasing. The support level at $14 may be the target for the metal this week and there is a possibility for the price to bounce in case the Bulls defend the level. Nevertheless, the stochastic Oscillator period 14 is below $25 level (oversold level) with the signal line bending down to indicate sell signal.
XAGUSD Medium-term Trend: Bearish
On the daily chart, XAGUSD is on the bearish movement. The Silver price continues its downward movement like that of the upper week. On May 03, there was a pullback of the Silver price towards the dynamic resistance levels. The price resumed its downward movement on May 06.
The Silver price maintains their position under the 21 period EMA and the 50 periods EMA with the two EMAs following the bearish direction. The Stochastic Oscillator period 14 is at 50 levels with the signal line pointing down to indicate a sell signal.
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