Watch out, silver bulls!
The precious metal is closing in on the top of its range visible on the daily time frame.
Can it sustain its climb past this point? Or will we see a bounce back to nearby support zones?
Take a look at these levels I’m watching on the long-term chart:
Silver (XAG/USD) Daily Chart by TradingView
Just like its fellow shiny metal, gold, silver has been on a tear in the past few days!
After all, risk-on vibes and anti-dollar flows have been in play, propping up higher-yielding assets like commodities on expectations that the Fed might consider cutting rates earlier.
Economic data points from the U.S. printed last week mostly came in weaker than expected, reviving easing hopes for May, although the NFP still managed to surprise to the upside.
With that, investors are paying extra close attention to this week’s set of top-tier U.S. reports since the figures might make or break hawkish Fed policy bets.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your fundie homework on silver and the U.S. dollar, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
Another round of dollar rallies could force XAG/USD to retreat from its daily range resistance around R3 ($25.037) and fall back to the long-term support near S1 ($21.903). Nearby support zones are also located at R2 ($24.269), R1 ($23.470) and the pivot point level ($22.702).
Moving averages are oscillating to reflect rangebound movement, but Stochastic has just reached the overbought region to signal exhaustion among buyers. Turning lower could signal that sellers are taking over and could allow the range resistance to hold.
Do you think that silver is gearing up to make a break for it?
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