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Ahmed Balaha
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The price of Silver is hanging by a thread which is increasing the bearish price forecast.
XAG/USD is trading at $71.69, up 1.85% in 24 hours, but the recovery looks slow. The price was revised lower near $64.00 earlier this week before breaking through. The design of the technology has not improved since then.
The background macro does not help. The DXY has been near 99.32 and the Fed is ordering rates to be cut until inflation catches up.
ECB and BoE are singing the same song. Non-yielding assets like silver do not fare well in those environments.
The recent volatility was brutal. Silver peaked at $80.17 on March 18 and then fell to $65.81 within days. Geopolitical conflict in the Middle East is currently under pressure. But the chart is still bearish.
Silver Price Prediction: Can XAG Price Survive Rejection at $81.00?
Silver’s jump isn’t convincing everyone yet.
The price is below a key resistance after a brutal week. The 7-day volatility stands at -8.84% and the major low since mid-March peaking above $80 is still intact.
The sparkly candle that was made earlier this week and the shape is still firing.
Resistance is at $80.50. Bulls need to retrace that level or another stop at $70 and $67.10. Lose $65.05 and the recovery idea is dead, and $55.05 appears.
To reverse the issue completely, the price should push above $85.10 and hold.
The RSI is crossing the oversold zone but the 2-hour chart is printing a U-pattern combination. This is not a return sign. It looks like a dead cat jumping until the tree proves otherwise.
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