SILVER Weekly Price Analysis – September 20
The penetration of the resistance level at $27 will increase the price to $29 and $35 price level. A breakout at the support level of $26 by the bears’ pressure will reduce the price to $23 and $19 price level.
Resistance levels: $27, $29, $35
Support levels: $26, $24, $23
XAGUSD Long-term Trend: Ranging
Recently, there was a price surge that favors the bulls and pushes the price to reach a high of $29 resistance level. The bulls failed to break above this level, saw bears exerting downward pressure on the Silver price. The price was pushed into a confluence zone of resistance and support level of $27 and $26 respectively. The ranging movement within the mentioned zone is becoming tighter as the bulls’ and the bears’ momentum is getting weaker.
From the long term perspective, the daily chart above highlights that the price action remains between the 9 periods EMA and 21 periods EMA. Possibly indicating that consolidation may continue until there is a breakout. The penetration of the resistance level at $27 will increase the price to $29 and $35 price level. A breakout at the support level of $26 by the bears’ pressure will reduce the price to $23 and $19 price level. However, the Relative Strength Index period 14 with the signal line bending down at 50 levels possibly indicating a sell signal provided support level of $26 does not hold.
XAGUSD Medium-term Trend: Ranging
The ranging movement commenced a few weeks ago in the Silver market remains as the movement is becoming narrower; which means that the buyers’ and sellers’ momentum is becoming lower. A key level of support now remains at the psychological level of $26. In case sellers can break below just mentioned level, selling pressure may increase with $24 being the next level of interest.
The 9 periods EMA remains interlocked with 21 periods EMA indicating that consolidation is in progress. Placing a Buy Stop at $27.42, Stop Loss at $26.56, and Take Profit at $28.49 price level will be advisable.