Since the start of the year, the price of Silver XAGUSDhas oscillated within a $1.00 range, specifically ($15.11-$16.11), and currently, it is pegged towards the low end of that range following what appears to be a triple-top reversal pattern.
The price of the shiny precious metal rallied magnificently between November and December 2018 from a bottom price of about $13.86 on November 14, 2018, to a top price of $15.57 on December 31. However, since then the change has been limited as the US markets continued to recover from the declines experienced during the fourth quarter of 2018.
Silver Futures XAG/USD Fundamental Analysis
Just like the price of gold and other precious metals, the price of silver relies upon the general outlook of the global financial markets. And while central banks do not hold it in such high preference when it comes to revamping their reserves as they do with gold, silver is still a major financial item in central banks monetary systems. Furthermore, the jewelry market also provides another fundamental catalyst as it is a cheaper option for gold.
Silver Futures XAG/USD Technical Analysis (the 240-min Chart)
From a technical perspective, the price of silver recently bounced off a crucial support zone at around the $15.00 level and now looks to be targeting a retest of $15.18, which has become a key resistance level in recent trading sessions.
As such, the bulls will look to target short-term profits at this level, while further up at around $15.28 provides more profits for intermediate traders. On the other hand, the bears will be hoping that the price of the shiny silver pulls back again towards the $15.00 level.
Silver Futures XAG/USD Technical Analysis (the Daily Chart)
On the daily chart, the price of silver appears to be about to complete a triple-top reversal pattern, which would suggest that movement further south is expected.
As such, the bears will be more optimistic when looking at things on a more long-term basis. They will look to target for profits at around $14.88 level while the bulls will hope that the reversal fails and instead a rebound back top takes place, which could propel the price of silver towards $15.30 level.
In summary, just like the price of gold, silver prices rely on the outlook of the global markets and central banks activity. Currently, with stock market maintaining a bullish outlook, the long-term outlook for silver looks bearish, though the bulls appear to have control in the short-term.