Silver Price Analysis: XAG/USD off session highs, focus on daily close

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  • Silver has pulled back from $29.86 to $29. 
  • The long upper wick attached to daily candle now shows uptrend exhaustion. 

Silver is currently trading at $29 per ounce, having printed a 7.5-year high of $29.86 during the early Asian trading hours. 

The daily candle now has a long upper wick. If prices suffer a deeper drop or remain unchanged till Friday’s close, a daily candle with a long upper shadow – a sign of uptrend exhaustion – will be confirmed. 

That would validate overbought readings on the daily chart indicators like the relative strength index and slow stochastics and could yield a notable price pullback. 

That said, the overall bias would remain bullish as long as prices are held above the former resistance-turned-support of $26.20 (July 28 high). 

Daily chart

Trend: Teasing bull exhaustion

Technical levels

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