- Silver gains bearish momentum after breaking the support at $27.57.
- Precious metals are affected by improving market sentiments and decreasing geopolitical risks.
- XAG/USD has room to continue falling, the next targets are $26.85 and $26.30.
Silver (XAG/USD) is undergoing a deep correction on Monday, with precious metals suffering as concerns over an escalation of the conflict in the Middle East subside. The decline in US yields has not supported demand for the pale metal, which has depreciated about 5.7% from Friday's highs.
XAG/USD Price Analysis: Technical Outlook
The bears gained confidence on Monday after pushing prices below the $27.57 support zone. Technical indicators are pointing downwards, approaching but not yet oversold levels and price action below the 50 and 100 SMAs.
Using Elliott wave analysis, the pair appears in the fourth corrective wave of a five-wave bullish cycle. The 38.2% Fib of the aforementioned bull run at $26.85 is a common target for corrections, and close below is the April 5 low at $26.30.
To the upside, the pair would need to reclaim previous support at $27.60 to shift focus to $27.95 and the mid-April high at $29.80.
XAG/USD Price Action – 4-hour chart
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
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