SILVER Weekly Price Analysis – January 24
The bearish pressure may increase and this may lead to a price decrease to the support level at $22. Below it is $19 and $16 levels. In case the bulls prevail and the $27 level is penetrated upside, then, $30 resistance level may be tested.
Resistance levels: $25, $27, $30
Support levels: $22, $19, $16
XAGUSD Long-term trend: Bearish
XAGUSD is on the bearish movement on the long-term outlook. A cup-shaped handle chart pattern is produced by the Silver price action last week on the daily chart. The bears managed to push the price below the support level of $25 two weeks ago. Ever since then the price has been consolidating around the $25 price level. An effort put in place by the bulls to push up the price failed. The bears’ momentum is equally weak to push the price downside.
The metal is trading over and around the 21 periods EMA and 9 periods EMA with the two EMA interlocked to each other which indicates that consolidation is in progress in the silver market. The bearish pressure may increase and this may lead to a price decrease to the support level at $22. Below it is $19 and $16 levels. In case the bulls prevail and the $27 level is penetrated upside, then, $30 resistance level may be tested.
XAGUSD Medium-term Trend: Ranging
On the 4- hour chart XAGUSD is bearish. The ranging movement continues in the 4-hour chart after the bullish momentum failed at the $27 price level. The $25 level was penetrated downside with the formation of the strong and big bearish candle. The bulls opposed the bearish movement in form of pullback to retest the resistance level of $25. The bulls could not penetrate the $25 level and the bears also lose momentum and which resulted in price consolidation around the $25 level.
The price is trading below and over the 9 periods EMA and 21 periods EMA at the $25 price level. The Relative Strength Index period 14 is above 40 levels with the signal lines pointing up to indicate a buy signal.