Silver prices surged by over 4% to $31.42 after rebounding from a low of $30.25 in thin liquidity conditions. The technical analysis indicates a strong upward bias, with the Relative Strength Index (RSI) showing a bullish trend that is not yet overbought. Key resistance levels for Silver include the psychological $32.00 figure, the year-to-date high at $32.51, and the $33.00 mark. On the other hand, key support levels are seen at the $31.00 figure, $30.50 psychological level, and the May 23 low of $30.07.
The rally in silver prices on Monday was significant, with gains of more than 4% observed. This surge occurred as Wall Street remained closed for Memorial Day, resulting in thin liquidity conditions. The XAG/USD price analysis shows that Silver is currently upward-biased, but has not yet tested the year-to-date high of 32.51. Momentum is in favor of buyers, as the RSI indicator remains bullish but has not reached overbought levels.
In terms of technical levels, the first resistance for XAG/USD is the psychological $32.00 figure. If this level is breached, the next resistance lies at the year-to-date high, followed by the $33.00 mark. On the downside, the first support level is at the $31.00 figure. Further support can be found at the $30.50 psychological level, and the May 23 low of $30.07. The daily chart for Silver prices indicates a strong upward trend, with the potential for further gains if key resistance levels are breached.
Overall, the current rally in Silver prices suggests a positive outlook for the grey metal. The technical indicators point towards a strong upward bias, with key resistance levels at $32.00, $32.51, and $33.00. On the other hand, key support levels are seen at $31.00, $30.50, and $30.07. Investors will be closely watching these levels to determine the next potential moves in Silver prices. With the RSI indicator still showing a bullish trend, there is optimism for further gains in the near term.
