The price of silver XAG/USD bounced back on Friday following declines witnessed over the previous two days. The price of the shiny precious metal had rallied from about $15.25 an ounce to trade at about $15.53 early in the week before pulling back on Wednesday and Thursday to hit a weekly low of about $15.13. However, XAG/USD advanced early on Friday to trade at about $15.39 before making a temporary reverse towards $15.30.
Silver XAG/USD Fundamental Analysis
Silver’s price is reliant on the general performance of the precious commodities market while economic factors also come into play. The US stock market remains in bullish mode while the greenback, while currently in some sort of a hiatus, is still strong enough to pin back any uptrend for the XAG/USD.
However, with fears beginning to build around the status of the global economy (BoJ cited weakening exports and outputs earlier on Friday) things could get interesting. The US-China trade talks are yet to come to resolve the current impasse while Brexit is still in a stalemate.
Silver XAG/USD Technical Analysis (the 240-min Chart)
From a technical perspective, the XAG/USD silver price looks to be trading just above the 50-period simple moving average in the 240-min chart. The current pullback means that the bulls can now target $15.40/45 for short-term profits, while the bears will be targeting $15.27/20.
The $15.45 price level also is located strategically next to the key Fib level of 38.20% while the $15.27 is just below the 23.60 Fib level. This makes the two price levels very realistic targets for both the bulls and the bears, respectively.
XAG/USD Technical Analysis (the Daily Chart)
On the daily chart, the price of silver XAG/USD appears to have recently made a bearish breakout that was triggered by a triangle formation pattern. The breakout, which occurred at the beginning of March has since taken the price of silver XAG/USD to a new trading range of about $15.00 to $15.50.
And based on the current price level of about $15.34, it looks like the bears will be targeting the $15.00 level for profits while the bulls will hope for an immediate rebound back top by targeting $15.50 for profits.
In summary, XAG/USD silver’s bullish run dating back the start of the year has not been smooth. However, it now appears to have ultimately ended with the bearish breakout. The Silver could continue to trade just above a new support zone of %15.00 through the next week.