Silver Price Technical Forecast: Silver Surges 13%


Silver Technical Price Forecast: XAG/USD Weekly Trade Levels

  • Silver Price up to date technical trade ranges – Weekly Chart
  • XAG/USD rebound off downtrend help approaching preliminary downtrend resistance
  • Weekly help 18.28/69 (vital), 16.66, 15.47/59 – resistance 20.86-21.13, 22.71, 23.28 (key)

Silver costs surged greater than 9.4% final week with XAG/USD rebounding off confluent downtrend help. The focus is on this restoration with the rally now approaching preliminary development resistance heading into the August open. Is this only a bear-market restoration or is a extra vital flip underway? These are the up to date targets and invalidation ranges that matter on the XAG/USD weekly technical worth chart. Review my newest Weekly Strategy Webinarfor an in-depth breakdown of this silver technical setup and extra.

Silver Price Chart – XAG/USD Weekly

Chart Prepared by Michael Boutros, Technical Strategist; Silver on Tradingview

Notes: In final month’s Silver Weekly Technical Forecast we famous that XAG/USD was, “testing a pivotal support zone and leaves the immediate short-bias vulnerable while above 18.28.” Price spent three-weeks testing this help confluence on the 25% parallel (blue) earlier than rebounding sharply final week with silver now up 13% off the lows. The first main check of downtrend resistance is now in view.

The rally is now probing the May lows at 20.46 with key weekly resistance eyed on the 50% retracement of the 2020 rally / 2016 excessive at 20.86-21.13– a breach / weekly shut above this threshold can be wanted to counsel a extra vital lows was registered final month / a bigger restoration is underway in the direction of 22.71. Key help stays regular at 18.28/68– a area outlined by the 100% extension of the 2021 decline, the 2017 swing excessive and the 61.8% Fibonacci retracement of the 2021 rally. A break / weekly shut under this threshold can be technically damaging and will gasoline one other accelerated decline in the direction of the February 2020 high-week shut at 16.66 and the decrease parallels close to 15.47/59.

Bottom line: Silver has rebounded off confluent downtrend help with the advance now approaching preliminary downtrend resistance. From a buying and selling standpoint, we’re looking out for a response / doable worth inflection on stretch into 21.13-21.13 early within the month for steerage IF reached. I’ll publish and up to date Silver Price Outlook as soon as we get additional readability on the short-term XAG/USD technical trade ranges.

For an entire breakdown of Michael’s buying and selling technique, evaluate his Foundations of Technical Analysis collection on Building a Trading Strategy

Silver Trader Sentiment – XAG/USD Price Chart

Silver Trader Sentiment - XAG/USD Price Chart - SLVR Retail Positioning - XAGUSD Technical Forecast

  • A abstract of IG Client Sentiment reveals merchants are net-long Silver- the ratio stands at +10.75 (91.49% of merchants are lengthy) – usually bearishstudying
  • Long positions are0.71% decrease than yesterday and 9.34% decrease from final week
  • Short positions are 1.04% greater than yesterday and 51.16% greater from final week
  • We usually take a contrarian view to crowd sentiment, and the actual fact merchants are net-long suggests Silver costs might proceed to fall. Yet merchants are much less net-long than yesterday and in contrast with final week. From a sentiment standpoint, the latest modifications in positioning warn that the present Silver worth development might quickly reverse greater regardless of the actual fact merchants stay net-long.

Active Weekly Technical Charts

– Written by Michael Boutros, Technical Strategist with DailyFX

Follow Michael on Twitter @MBForex

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