SILVER Weekly Price Analysis – December 27
The high of the year was reached in August but the bears opposed the price increase with the formation of a strong bearish candle that engulfs the previous candle; the price dropped to a $22 price level which may be a pullback
Resistance levels: $25, $27, $30
Support levels: $22, $19, $16
XAGUSD Long-term Trend: Bullish
XAGUSD is bullish in the monthly chart. The Silver metal was consolidating from the previous year into 2020. It was ranging above the dynamic support and resistance within the $25 and $22 price level. In March there was a bearish breakout at the $22 price level which extends to the $13 price level but the level withstands the bears’ pressure and the price decrease was terminated. The month of April marks the beginning of a good mood for the bulls. An inside bar bullish candle pattern formed and the price started increasing. More strong bullish candles were produced and the former resistance level of $19, $22, and $25 were penetrated. The resistance level of $30 was tested as the high of the year.
The high of the year was reached in August but the bears opposed the price increase with the formation of a strong bearish candle that engulfs the previous candle; the price dropped to the $22 price level which may be a pullback. The bulls dominate the market in the last month of 2020 which may be a restoration of the bullish trend. Further price increase envisaged in 2021 as the relative strength is pointing up at 65 levels. Also, the two EMAs are well separated and the price trading above the EMAs.
XAGUSD Medium-term Trend: Ranging
The bulls overpower the bears in the weekly chart in 2020; The Silver has been under the pressure of the bulls. The price increases steadily to the $30 price level but unable to penetrate the level. The price pulls back to retest the support level at $22. The Silver started consolidation within the $25 and $22 price level. Last week, the $25 price level was penetrated and the price increases towards the $27 level.
The resistance levels found above the current price are $27, $30, $33 while the support levels can be found at $22, $19, and $16.