SILVER Weekly Price Analysis – April 28
Breakout at the lower trend line of the triangle is possible only when the Bears increase their pressure and the bearish candle close below the trend line down towards the price level of $14.
Resistance levels: $15, $17, $18
Support levels: $14, $11, $9
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 lower trend line of the descending triangle formed; because the weekly candle did not close below the trend line but rather resulted to the formation of a hammer candle within the triangle. Hammer candle pattern indicates bullish reversal; further pressure from the Bulls will make Silver price to break up the triangle and the price will target $15 level.
The 21 periods EMA and 50 periods EMA is flat horizontally showing no direction within the descending triangle chart pattern which connotes that consolidation is ongoing in the Silver market. The metal is still trading under the 21 period EMA and 50 periods EMA. Breakout at the lower trend line of the triangle is possible only when the Bears increase their pressure and the bearish candle close below the trend line down towards the price level of $14. However, the Relative Strength Index period 14 is at $30 level with the signal line bending towards north to indicate buy.
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 below the two EMAs. On April 23, the Bears tried to push the Silver price to reach $14 level but the Bulls opposed the movement and returned the price into the triangle.
Last week market closed with Bullish candle touching the dynamic resistance of 21 periods EMA and the Relative Strength Index period 14 is at 50 with the signal line pointing up to indicate buy signal.
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