Silver Holds Steady at $33.50 Following Breakout, Set to Reach $34.50

The price of the XAG/USD pair remains steady at around $33.40 as the new week begins in the American trading session. After a 4% increase in the previous week due to a bullish technical breakout and renewed demand for safer investments, the white metal has remained above the psychological level of $33.00. While the overall market conditions are favorable and buyers continue to control the market, there is a temporary pause in the upward momentum. The recent breakout from a symmetrical triangle pattern on the daily chart, which has been a limiting factor since mid-April and early May, has provided support for silver prices. Multiple daily closes above the triangle pattern and the 21-day EMA have confirmed the breakout. However, the current resistance zone of $33.70 to $34.00 could limit further upside movement. On the other hand, initial support is seen at the $32.80 to $32.60 level, followed by $32.00 and $31.00. Momentum indicators are moderately bullish, with the RSI still above 50 and the MACD showing minimal bullish divergence, indicating that the market is likely experiencing a temporary pause rather than a reversal.

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