- Silver erased losses and climbed back above $18.70.
- The bounce could gain momentum if it breaks $19.00.
- The primary trend remains bearish; break below $18.00, to open the doors at $17.50.
the silver it bottomed on Thursday at $18.23, slightly above the all-time low of $18.13. It then rallied strongly above $18.50, boosted by the rally in gold prices following the sharp decline in US yields.
The XAG/USD it broke above the $18.75 area, a relevant short-term support. It reached a high of $18.81 and a new daily high. If the rebound holds, the chances of a more sustainable recovery will increase. The next critical resistance is around $19.00.
If silver breaks the $19.00 area firmly, it could target a double bottom near $18.20 and regain strong support. The next relevant barrier is seen at the $19.50 area which contains the 20-day SMA (intermediate resistance at $19.15).
The daily chart also offers some positive signs for the metal, with the MACD making the first bullish cross in two months. Stochastic oscillators are breaking out of oversold levels.
A pullback below $18.50 should add pressure to the $18.20 low, softening the aforementioned bullish signals. Break below $18.20 would expose $18.00. The break below could trigger volatility and a possible acceleration towards $17.45.
XAG daily chart
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Technical levels
Source: Fx Street
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