Today XAG/USD was trading higher and posted an
intraday high at $20.34 and low at $19.62. The intraday sentiment remained
bullish, confirmed my the 20-day, 30-day
and 55-day EMA, as shown on the daily chart.
MACD and RSI are showing overbought market, so as expected a slight downward
correction was seen slightly below the daily support zone at $19.834.
Last week we witnessed an intermediate-term higher trending facing to the
long-term resistance zone. Since then silver is hovering around $19 level. Meanwhile
the highs marked on 1st and 4th of July and the powerful move in the short-term
left buyers exhausted. In case the market skip some additional selling, a short
consolidation period is about to push the price towards $21 level. One thing is
sure – the recent highs are yet to be digested with a possible extended pull
back period.
Currently we should pay particular attention to the behaviour against Monday’s
highs. If trading higher, the resistance at $21.56 (July 2014 high) should be
set on focus. On the other side, closing below $19.83 will drag silver towards supports
at $19 zone or even $18.50.
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