SILVER XAGUSD Chart Technical Outlook heading to the confluence zone of $22.92
Silver has continued to trend higher after posting a swing low of $20.66 on October 3. This has been fuelled by a move to safety, lower US yields, and downside pressure on the USD Index.
Technical studies would suggest that $22.92 is the target zone. This is:
- The measured move target for the flag formation (AB=CD) is located at $22.94.
- Bespoke resistance is at $22.91.
- The 78.6% pullback level from $23.55-$20.66 is located at $22.93.
Conclusion Although there is ample scope for a correction to the downside, I look for dips to be limited. Prime support is the reverse trend line from the flag breakout is located at $21.85. The target zone is $22.90-94.
Resistance: $22.45 (61.8%), $22.91 (bespoke), $22.93 (78.65)
Support: $21.85 (reverse trendline support), $20.80 (demand zone), $20.66 (swing low).
