SILVER Weekly Price Analysis – August 30
The breaking and closing of the daily bearish candle below the support level at $26 may drop the price at $24 and 423. In case the demand level of $26 holds, the price may continue its bullish trend and the Silver may encounter resistance at $27, $29, and $30.
Resistance levels: $27, $30, $35
Support levels: $25, $23, $19
XAGUSD Long-term Trend: Ranging
Silver price reached the high of August at $30 price level on August 20. The bulls’ momentum became weak and could not break up the resistance level. On August 11, the bears gathered more pressure; this is seen on the daily chart with the formation of strong and massive bearish candle. The price dropped to the demand level at $23 where the bulls equally opposed the downtrend. The buyers pushed up the price above the $25 level on August 13. The bulls’ and bears’ momentum seems to be equal and ranging movement commenced within $27 and $25 levels.
The three EMAs are interlocked to each other with the currency pair trading over and around the 5, 8, 13 periods moving averages, which is an indication that consolidation is ongoing. The bullish breakout at the resistance level of $27 will expose the pair to $30 price level which may extend to $35 price level. In case $27 price level holds, the breakout may take place at $25 demand level and this will decrease the price to $23 and $19 level.
XAGUSD Medium-term Trend: Ranging
XAGUSD is on the ranging zone. The Silver commodity is range-bound within the resistance level at $27 and the support level at $25. The consolidation movement will continue as long as the two price levels just mentioned holds.
The 5 periods MA, 8 and 13 periods MAs are locked around each other and the price is trading around the three EMAs as a symbol of consolidation. It is advisable to place Sell Stop at $25.61431, Stop Loss at $26.63755 and Take Profit at $23.36318.