Heads up, commodity traders!
This precious metal has been trending lower for quite some time, but it looks like bulls are attempting a breakout.
Here are the levels I’m watching.
Silver (XAG/USD): Daily
Silver has been cruising below a falling trend line since the early part of this year, and this long-term resistance is being tested again.
Will it continue to hold?Technical indicators are suggesting so, which means that the precious metal could slump back to the recent lows or even make new ones.
The 100 SMA is below the 200 SMA, hinting that the path of least resistance is to the downside or that the selloff is more likely to resume than to reverse.
In addition, the 100 SMA dynamic resistance is close by, adding another upside barrier in case XAG/USD pops slightly above the trend line. This happens to be right around the psychological resistance at $20 also!
Stochastic has some room to climb before reaching the overbought area, so there could be a bit more bullish energy left before buyers are completely exhausted.
Do you see those, too?
In any case, a break past all the nearby upside barriers might be enough to confirm that a major reversal from the downtrend is in the works. Better keep your eyes peeled!
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