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Silver (XAG) Daily Forecast: Hits $32.51; Bearish Correction Ahead?

By:
Arslan Ali
Published: May 20, 2024, 07:09 GMT+00:00

Key Points:

  • Silver prices rise to $32.51 on Fed rate cut expectations and Middle East tensions.
  • Fed's cautious stance on monetary policy fuels investor optimism, boosting silver demand.
  • US dollar weakens amid potential Fed rate cuts, driving bullish sentiment for silver.
Silver (XAG) Daily Forecast: Hits $32.51; Bearish Correction Ahead?

In this article:

Market Overview

Silver (XAG/USD) Price Forecast

Silver Price Chart
Silver Price Chart

Silver (XAG/USD) is currently trading at $31.70, up 2.60%. The 4-hour chart highlights the pivot point at $32.52, a critical level for near-term price action. Immediate resistance is identified at $33.09, followed by $33.68 and $34.24. On the downside, immediate support lies at $31.44, with further support at $30.76 and $30.27.

The 50-day Exponential Moving Average (EMA) is positioned at $29.86, while the 200-day EMA stands at $28.36, indicating a continued bullish trend. However, the formation of a Doji candle below the $32.52 resistance level suggests a potential bearish correction. If this resistance holds, Silver could drop to the 23.6% or 38.2% Fibonacci retracement levels.

In conclusion, Silver remains bearish below $32.52. A break above this level could reinforce a bullish bias, while staying below may lead to further declines.

About the Author

Arslan, a webinar speaker and derivatives analyst, has an MBA in Finance and MPhil in Behavioral Finance. He guides financial analysis, trading, and cryptocurrency forecasting. Expert in trading psychology and sentiment.

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