Silver is licking its wounds after reaching the lowest levels in two weeks just below the $25 threshold.
The industrial metal defends critical support, benefiting from the optimism surrounding the US infrastructure spending. According to reports, the Biden administration is mulling a $4 trillion jobs, infrastructure spending proposal.
How is XAG/USD positioned on the charts?
The Technical Confluences Detector is backing the fundamental view, as Silver continues to hold above powerful support at $24.95/24.90.
The support line is the confluence of the pivot point one-week S3, pivot point one-month S1 and the two-week lows.
A breach of the latter would expose the $24.79 support area, where the Bollinger Band one-day Lower lies.
Further south, the pivot point one-day S3 at $24.55 would be on the sellers’ minds.
Alternatively, the XAG bulls face a strong hurled around $25.25, the convergence of the Fibonacci 38.2% one-day, SMA50 one-hour and Fibonacci 161.8% one-week.
The next relevant resistance awaits at $25.40, the pivot point one-week S2.
A sharp rally towards the $25.65 level, the intersection of the SMA100 and SMA5 one-day, cannot be ruled if the abovementioned barrier is taken out.
XAG/USD resistance and support levels
The Confluence Detector finds exciting opportunities using Technical Confluences. The TC is a tool to locate and point out those price levels where there is a congestion of indicators, moving averages, Fibonacci levels, Pivot Points, etc. Knowing where these congestion points are located is very useful for the trader, and can be used as a basis for different strategies.
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