XAG / USD eyes $ 27.80 above key $ 27 support – Confluence Detector
Silver (XAG / USD) is off three-month highs of $ 27.55, consolidating Thursday’s rally above the $ 27 mark. Continued weakness in US dollar and treasury bond yields pushed silver prices higher, while a bullish technical picture also added to the resurgence of optimism.
Silver followed the rally in gold after gold finally broke through key technical resistance of $ 1,800 and triggered stop orders. In addition, the news that the CME lowered its initial and lowered maintenance margins for gold, silver and platinum also offered support to the white metal.
How is Silver positioned on technical charts?
Silver price chart: main resistance and support levels
The Technical Confluence Detector shows that Silver’s path of least resistance appears to be on the rise amid a lack of healthy resistance level.
Therefore, the doors remain open for the XAG bulls to test the upside target of $ 27.80, which is the R1 one-day pivot point.
Before that, buyers might face some resistance around $ 27.50, where the previous high coincides with the four hour higher Bollinger Band.
Alternatively, immediate support is seen at $ 27.15, the confluence of the Fibonacci 23.6% on a day and the pivot point on a week R3.
A breach of the latter could expose strong support at $ 27, which is the intersection of 38.2% Fibonacci in one day, 161.8% Fibonacci in one week, and one month R1 pivot point.
The next best safety net for XAG bears awaits at $ 26.80, where the one-week R2 pivot point converges with the one-hour SMA50.
This is what it looks like on the tool
About the technical confluence detector
The TCD (Technical Confluences Detector) is a tool to locate and report price levels where there is congestion of indicators, moving averages, Fibonacci levels, pivot points, etc. Knowing where these congestion points are located is very useful for the trader, and can be used as the basis for different strategies.