Weekly Silver Outlook
Spot Silver (XAG/USD) has been experiencing a mix of highs and lows, leading to a downward trend on the weekly chart. However, it recently traded at $96.43, suggesting a potential return to an upward movement. A breakout above $61.01 could reignite the downtrend.
The first significant range to note is between $121.67 and $61.01, with resistance positioned at $91.34. The second range falls between $96.43 and $61.01, and the 50% level at $78.72 is crucial to monitor this week.
In a broader sense, the long-term range stretches from $45.55 to $121.67, where the 50% level at $83.61 might serve as a resistance point.
For the minor range of $61.01 to $83.06, the pivot at $72.03 provided support in the previous week.
This week, how traders respond to the $78.72 level will likely set the market’s direction. A strong rally above this point may signify a buyer presence, potentially leading to a challenge at the minor high of $83.06 and the resistance level at $83.61. This resistance might provoke acceleration toward $91.34.
Conversely, if silver dips below $78.72, it could indicate seller strength, suggesting a re-test of $72.03 and $70.86, the latter serving as a possible point for a downward acceleration.
This week’s sentiment hinges significantly on the $78.72 level. Spot Silver closed above this figure on Friday, which is noteworthy. If this upward momentum can be maintained, the minor high at $83.06 would be the next target, followed by the long-term resistance at $83.61, which could trigger further acceleration toward $91.34. Should the price drop below $78.72, we may see a swift unwind back to the $72.03 to $70.86 region.
The outcome will likely be influenced by Tuesday’s Consumer Price Index report for April. Weaker numbers may keep yields steady and the USD index weak, allowing Spot Silver (XAG/USD) to have a clearer path towards $83.06 and $83.61. On the other hand, strong data could reverse the interest rate trends that fueled last week’s rally, resulting in rising yields and a stronger dollar, possibly testing $78.72 from above instead of below. It’s a pivotal moment for silver as we head into the week, though the CPI report will serve as the real entry point. Until then, other factors seem rather secondary.
For additional details, check the economic calendar.
