SILVER Weekly Price Analysis – May 22
Further increase in the Silver price is highly envisaged. As long as the Bulls momentum breaks up the 21 periods EMA, the price may find its resistance at $24 price level when it break $22 and $23 levels.
Resistance levels: $22, $23, $24
Support levels: $21, $20, $19
XAGUSD Long-term trend: Bearish
On the long-term outlook, XAGUSD (Silver) is bearish. The Bulls were unable to push the Silver price above the $26 resistance level. Initially, the Bulls were in control of the Silver market but found it difficult to penetrate the barrier at the just mentioned level. The Bears took over the Silver market and the price pulled back towards the south, bears increase their pressure and the price reduces to $22 price level. Further pressure from the sellers reduce the Silver price below $22, tested $20 level.
The Silver price retains its trading below the 21 periods EMA but above the 9 periods EMA; which implies weak bearish momentum. The relative strength index period 14 is at 39 levels with the signal lines pointing upside to connote buy signaling. Further increase in the Silver price is highly envisaged. As long as the Bulls momentum breaks up the 21 periods EMA, the price may find its resistance at $24 price level when it break $22 and $23 levels.
XAGUSD Medium-term Trend: Bearish
XAGUSD is bearish on the daily chart. The Silver price has been under bearish pressure for more than two weeks on the 4-hour chart with the candles pushing down the price towards $21 level. On May 13, the Silver price had a pullback with the formation of a strong bullish candle and the price is increasing towards the $22 price level.
The Silver price is slightly above the 9 periods EMA and 21 periods EMA.. The relative strength index period 14 is above 53 levels with the signal lines pointing up to indicate buy signal. In case the Bears gain more pressure the price may return to the previous low of $21 level.