- Silver rally fails at $22.05 and pulls back to $21.50.
- The precious metal has reached a major resistance near $22.00.
- With the RSI at overbought levels, some consolidation is likely.
The upward trend in prices silver from early November lows in the $19.00 zone it has stopped at five-month highs of $22.05 on Friday, before pulling back to the $21 mid zone. On the weekly chart, however, the pair is on track to post a nearly 5% recovery.
The precious metal has hit a major resistance hurdle around $22, where the 50% Fibonacci retracement of the April-September downtrend and the June 16, 17, 21 highs are holding back traders. bullish
Beyond that, the pair has reached overbought levels on the hourly and daily charts, suggesting that some consolidation or even moderate pullback is still consistent with the possibility of further appreciation.
To the upside, above the mentioned $22, the pair could head for June 3-6 highs at $22.50 before targeting the 61.8% retracement of the mentioned downtrend at $23.
Downside attempts so far hold above the 200-day MA, now at $21.45, with the next potential support levels at $20.95 (low Oct 10) and $20.35 (low Nov 7).
XAGUSD daily chart
Technical levels to watch
Source: Fx Street
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