As per the series of analysis, the latest, 31 May, of which can be read here, Silver Price Analysis: Bulls move in on critical resistance, XAG/USD has been making a very tough time of the upside since correcting the 13 – 18 May bullish impulse.
A number of bullish attempts to extend the bullish trend have faltered since the 21 May lows marking the end of the correction’s range to the downside.
Bulls continue to attempt to take control and the start of the week’s price action had been encouraging, as per the prior analysis as follows:
Prior analysis, 4-hour chart
”As illustrated, the price has pierced the dynamic resistance and subsequently moved up to test the horizontal resistance and prior 4-hour highs.
The price has also fallen back to test the support structure and bullish Momentum would be expected to drive the price on to reach fresh daily highs in a new daily bullish impulse.”
Live market update, 4-hour chart
Meanwhile, and unsurprisingly, the price has been hit by the bears yet again around the prior resistance.
However, that is not to say that the outlook is any less bullish.
The bulls have so far committed at the 21-EMA and prior support structure from which would be expected to hold this significant retest.
In doing so, there will be a convincing prospect of a final push for the extension of the bullish trend to fresh daily/weekly highs.
Having said that, the fact that the price didn’t halt at the prior resistance speaks volumes.
A break below this last structural defence that includes the confluence of the counter trendline, the build-up of 4-hour horizontal support as well as the 21 EMA, then we will be back to square one and neutral again with Momentum tilted towards or below zero.
27.80 is key for the bears and then 27.50 thereafter.
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