Silver Tests $38 Support
Silver (XAG/USD) weakened after two days of gains, trading around $38.10/oz during the European session on Friday (August 22nd). The daily chart is still forming a descending channel, indicating a bearish bias remains active, although there is room for a short-term bounce.
Momentum-wise, the 14-day Relative Strength Index (RSI) is above 50, suggesting a mild bullish outlook. The price is also slightly above the 9-day EMA (EMA) of $37.96, indicating that short-term momentum has not dissipated. However, the $38.00 area is now psychological support being tested.
A breach of $38.00–$37.96 could lead to selling pressure towards the 50-day EMA of $37.21. A further decline opens the way to the lower boundary of the channel at ~$35.60, then the 11-week low of $35.28 (June 24th)—a level that could weaken intermediate momentum.
On the upside, initial resistance lies at the upper boundary of the channel at ~$38.60. A clear break above this area has the potential to reverse the bias to bullish and push the price to test $39.53—the highest peak since September 2011, which was touched on July 23. (ayu)
Source: Newsmaker.id
