SILVER Weekly Price Analysis – August 02
The traders should be looking for resistance level at $25 and $26.7 price level should the bulls are able to break up the strong barrier at $24 price level.
Resistance levels: $24, $25, $26.7
Support levels: $23, $21, $19.5
XAGUSD Long-term Trend: Bullish
The buyer remains the dominant character in the Silver market; it soars violently to test the resistance level of $25 on July 28. The sellers defended the resistance level and the daily candle was left as long-legged Doji candle pattern; this could be a signal to the traders that it has reached the peak for an uptrend. Following the formation of the big Doji is the price consolidation within $23 and $24 price levels.
On the daily chart above, the traders should be looking for resistance level at $25 and $26.7 price level should the bulls are able to break up the strong barrier at $24 price level. The inability to break up the $24 level by the bulls may result in bearish price reversal and the sellers will be confronted with a support level at $21 and $19.5 in case the bears break down the $23 level.
The Pointing upside of Relative Strength Index period 14 above 75 levels shows that Silver price may increase further before it falls.
XAGUSD Medium-term Trend: Bullish
XAGUSD found resistance at $25 price level on July 28, a bearish candle pattern formed called “Rail Road Track”. The price declined to $23 price level and it started ranging movement within $24 and $23 price level.
Traders may place Buy stop order at $24.665, Take profit at $25.551, Stop loss at $23.376. This signal becomes invalid if it does not trigger within 12 hours. The RSI indicator is found at 60 levels pointing up to indicate a buy signal