XAG Price Analysis: Silver Holds Gains From Longer-Term Rally

In this article, we’ll dissect the Investing.com, TradingEconomics, and TradingView charts to determine where silver is now, where silver is supported, and where silver is resisted next.

Silver Pulls Back Toward $75

Silver traded at $75.515 on Investing.com, down 1.2075 points, or 1.57%, on the day. The XAG/USD pair was trading up to the $77 area on the intraday chart before its price was pushed down gradually by sellers.

Silver broke out of the lower range during the evening session. Even so, it was not able to maintain the higher levels when the price rose above $76.50. Since then, the chart has been trending lower highs and moving back towards $75.50.

The short-term picture isn’t as clear. Silver fell 0.61% in the last week and had almost no change in one month, according to Investing.com data. The metal, however, is still in the process of correcting from its earlier high, as seen in the three-month reading, which was at -14.43%.

Despite this, longer-term data are still solid. Over the last six years, silver’s gain has been 50.92% and 125.38%, respectively. This is not from a low base, as the latest weakness is taking place within a larger bull market cycle.

Longer-Term Chart Shows Strong Rally Cooling

Silver was valued at close to $75.349 in silver trade at 1.295 points less, or 1.69%. The 12-month graph has rallied significantly from the $30-$40 range last year to a significant level of $110 or more earlier this year.

Following that break, silver found support and immediately reversed to trade in a wide range between approximately $70 and $90. The price around $75 puts XAG closer to the bottom half of the range.

According to the TradingEconomics chart, it’s important to traders who are looking to see if silver is forming a bottom or another run lower. A close-up of the structure of the recovery, keeping numbers above the $70 threshold. A further move below would weaken the longer-term setup and suggest further risk of correction.

The good news is that silver must get back to $80 first to begin the discussion of a higher comeback towards $90. Meanwhile, price action appears to be range trading following a big spec trading run.

TradingView Signals Short-Term Compression

At the time of writing, silver was trading in the 30-minute time frame around the $75.274 mark, down 0.17% from the previous day. Bollinger bands indicated that the price was trading in the upper band at $76.219, the middle band at $75.651, and the lower band at $75.083.

The chart shows that silver is near short-term support in that configuration. If buyers hold up the $75.08 level, then the price may try to push towards the middle band around $75.65 again. If that ball is pushed harder, then the $76.21 would come back into view.

According to TradingView, the tide is still low. The MACD line was trading close to -0.117 while the signal line moved closer to -0.079. The histogram was also negative near -0.038, indicating that sellers still have short-term control.

Volume was also moderate with no buying run-through. That suggests that silver will require more involvement to return above the $76.20 resistance level.

At this time, the silver chart is in a decision position. Retailers will see a stable market with $75 holding, allowing for another rebound attempt. A move below $75 may prompt a near-term test of lower support at $74, while a pullback above $76.20 would help the short-term recovery.