Silver tests $74 resistance as traders eye next directional move
The most recent silver price analysis put $73 as the primary support level and $74 as the next resistance level. But other traders also noted a potential move to $75 if silver managed to hold the structure and prevent a breakdown below short-term support.
Silver Rejects Near $74
DAYI BORSA noted that silver was rejected at $74 following a short-term move up. XAGUSD was seen retreating from the upper resistance band on the chart, with price positioned at the day 18 region following a loss of momentum in the region of the marked sell.
Additionally, the X chart also identified the $72.78-72.79 region as a support region. The blog post suggested the sell-off may have to reach $73 for a new rally to emerge. This leaves the short-term chart in a downward, then upward, pendulum.
Interestingly, DAYI BORSA referred to $74 as the short sell level and the level below $73 as the buy level. The chart's path was expected to have a dip toward support and then a possible move towards the $75 level, provided the lower levels are protected.
Traders Watch $73.13
Kerem KATIPOĞLU also noted the $73 level in another XAGUSD chart. In his post, he pondered whether the silver price was headed up and highlighted that "Below 73.13" was found with a rejection, so that level was a line for the short-term bullish setup.
The X price chart exhibited a flag pattern following a strong rally. This is typically a consolidation after a strong move, but the structure is dependent on the lower line of the flag. This would be undermined if the price breaks below $73.13.
The upper projection on the chart suggests the $74 region if silver breaks out. This scenario aligned with the longer-term intraday scenario, where the XAGUSD must retest the top of the range before investors can turn their eyes back to $75.
Daily Chart Shows Wider Setup
UselinK101 posted a longer-term XAGUSD daily chart, which showed silver in consolidation after a previous move. The chart showed a wider descending pattern, and the price was still trading inside a corrective channel after the previous high, as noted in the post.
The post added that each sell-off for silver is lessening after its previous high. However, the daily chart still depicted price within a consolidation, which means that buyers will need a clear breakout to confirm a larger upside target.
Also, the X chart implied silver could still be in a final leg down before a broader trend resumes. This keeps $73 on the daily and intraday time-frames significant because a strong reaction would support the rebound theory.
Meanwhile, XAGUSD is confined to short-term support and resistance. If it breaks above $74, $75 would become a renewed target, but if it breaks below $73.13, the current bullish structure will become less meaningful, and support would be tested around $72.78.
