Silver is edging higher today and is currently trading at $16.10, having tested the intraday R1 pivot resistance at $16.20. This resistance is a region where XAGUSD had also registered a double top reversal in January and February 2019. Further tests of this resistance area are expected.
The latest round of bullishness in XAGUSD this week completes the price projection move following the break of the bull flag pattern seen on the daily chart. Further upside will only be seen when there is a decisive close of the daily candle above the $16.12 resistance with at least a 3% upside penetration. This breakout move must be supported by a surge in buying volume to be successful. Failure of the break will see price retreat to the $15.82 or even $15.65 support levels, formed by the central pivot and the intraday S1 pivot levels. $15.35 may also be a medium term support target if the breakout fails. A successful break will target $16.29 and $16.59 respectively, as initial resistance targets.Don’t miss a beat! Follow us on Twitter.