Active Support on XAG/USD Following -2.9% Fall Last Week
Spot silver in $ terms was a chart of interest in last week’s edition of The Pattern Pulse. The section for XAG/USD noted the following (italics):
XAG/USD stepped below two key levels of support at $23.98 and $24.10 yesterday, both of which are now marked as potential resistances. With the room available for price to target support between $23.09 and $23.31 and the Relative Strength Index (RSI) crossing under its 50.00 centreline (negative momentum), further underperformance could be seen, at least in the short term.
As seen from the daily chart of silver, the precious metal closed out the week, bumping heads and recoiling from support between $23.09 and $23.31. In addition to this support structure (not highlighted in The Pattern Pulse) was the nearby ‘alternate’ AB=CD bullish formation at $23.15, depicted by a 1.618% Fibonacci projection ratio.
Based on current technical studies, despite the RSI reflecting negative momentum (< 50.00), there is scope to navigate higher on the daily chart for silver this week (at least in the short term), targeting resistance between $24.10 and $23.98.
XAG/USD stepped below two key levels of support at $23.98 and $24.10 yesterday, both of which are now marked as potential resistances. With the room available for price to target support between $23.09 and $23.31 and the Relative Strength Index (RSI) crossing under its 50.00 centreline (negative momentum), further underperformance could be seen, at least in the short term.
As seen from the daily chart of silver, the precious metal closed out the week, bumping heads and recoiling from support between $23.09 and $23.31. In addition to this support structure (not highlighted in The Pattern Pulse) was the nearby ‘alternate’ AB=CD bullish formation at $23.15, depicted by a 1.618% Fibonacci projection ratio.
Based on current technical studies, despite the RSI reflecting negative momentum (< 50.00), there is scope to navigate higher on the daily chart for silver this week (at least in the short term), targeting resistance between $24.10 and $23.98.