Key Takeaways:
- Silver climbs to $29.98, gaining 1.69% due to weaker-than-expected US jobs data.
- Technical outlook shows a double top pattern, suggesting potential for further losses.
- Key levels to watch: Resistance at $30.05; support at $29.79, $29.00, $28.74, $28.34, and potential double top objective at $27.80.
Silver saw a recovery on Wednesday as US Treasury bond yields dropped following disappointing US jobs data. Currently trading at $29.98, the XAG/USD has gained 1.69%.
XAG/USD Price Analysis: Technical Outlook
A double top chart pattern has formed on Silver’s daily chart, indicating a possible downward trend. Despite an increase towards the May 24 low and encountering resistance at $30.05, buyers are facing challenges in surpassing $30.00, potentially leading to further downside movements.
If XAG/USD drops below the recent cycle high of $29.79, it may target $29.00 next. Breaking below $29.00 could expose previous key support levels, such as $28.74 (May 18, 2021, high) and $28.34 (June 10, 2021, high), followed by the double top objective at $27.80.
XAG/USD Price Action – Daily Chart
FAQs:
1. Why did Silver’s price climb to $29.98?
Silver’s price increase to $29.98 was influenced by weaker-than-expected US jobs data, leading to a drop in US Treasury bond yields.
2. What does the double top pattern in the technical outlook suggest?
The double top pattern in the technical outlook indicates a potential for further losses in Silver’s price.
3. What are the key support and resistance levels to watch in XAG/USD?
Key levels to watch for XAG/USD are resistance at $30.05 and support at $29.79, $29.00, $28.74, $28.34, and a potential double top objective at $27.80.
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