#XAGUSD @ 25.617 risks a bearish-engulfing pattern and double-top formation as the price retreats from a 12-month high. (Pivot Orderbook analysis)
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- XAG/USD risks a bearish-engulfing pattern and double-top formation as the price retreats from a 12-month high.
- A downward path is anticipated, with crucial support levels at $25.00 and $24.00 amid fading buying momentum.
The pair currently trades last at 25.617.
The previous day high was 26.06 while the previous day low was 25.44. The daily 38.2% Fib levels comes at 25.83, expected to provide resistance. Similarly, the daily 61.8% fib level is at 25.68, expected to provide resistance.
Silver price retreats after reaching a 12-month new high at $26.13 in the New York session. An improvement in the US labor market due to an upbeat US jobs report trumped XAG’s chances to test last year’s high. At the time of writing, the XAG/USD is trading at $25.60, down 1.69%.
As of writing, XAG/USD is still upward biased but at the brisk of a pullback. If XAG/USD registers a daily close below the May 4 daily low of $25.44, that could form two bearish signals: firstly, a bearish-engulfing candle pattern which suggests that downward action is warranted. The second is the possible formation of a double-top, a major reversal chart pattern, which could drive prices toward the $24.00 figure.
The Relative Strength Index (RSI) indicator added another signal to the mix, forming a negative divergence. This means that as XAG/USD’s price action reached successive higher highs, the RSI peaked at lower highs as buying momentum faded. Additionally, the 3-day Rate of Change (RoC) shows that buying pressure is waning as sellers move into action.
Therefore, XAG/USD’s path of least resistance is downwards. The first support would be the $25.00 mark. A breach of the latter would expose the April 25 swing low of $24.49, followed by the 50-day Exponential Moving Average (EMA) at $24.11, which, once cleared and XAG/USD’s will challenge the $24.00 figure.
Technical Levels: Supports and Resistances
XAGUSD currently trading at 25.6 at the time of writing. Pair opened at 26.04 and is trading with a change of -1.69 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 25.60 |
| 1 | Today Daily Change | -0.44 |
| 2 | Today Daily Change % | -1.69 |
| 3 | Today daily open | 26.04 |
The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 25.23, 50 SMA 23.37, 100 SMA @ 23.3 and 200 SMA @ 21.7.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 25.23 |
| 1 | Daily SMA50 | 23.37 |
| 2 | Daily SMA100 | 23.30 |
| 3 | Daily SMA200 | 21.70 |
The previous day high was 26.06 while the previous day low was 25.44. The daily 38.2% Fib levels comes at 25.83, expected to provide resistance. Similarly, the daily 61.8% fib level is at 25.68, expected to provide resistance.
Note the levels of interest below:
- Pivot support is noted at 25.64, 25.23, 25.01
- Pivot resistance is noted at 26.26, 26.47, 26.88
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 26.06 |
| Previous Daily Low | 25.44 |
| Previous Weekly High | 25.36 |
| Previous Weekly Low | 24.49 |
| Previous Monthly High | 26.09 |
| Previous Monthly Low | 23.57 |
| Daily Fibonacci 38.2% | 25.83 |
| Daily Fibonacci 61.8% | 25.68 |
| Daily Pivot Point S1 | 25.64 |
| Daily Pivot Point S2 | 25.23 |
| Daily Pivot Point S3 | 25.01 |
| Daily Pivot Point R1 | 26.26 |
| Daily Pivot Point R2 | 26.47 |
| Daily Pivot Point R3 | 26.88 |
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