Technical Analytics Report

XAG/USD: Fundamental Analysis Report 29 April 2021

XAG/USD: Fundamental Analysis Report 29 April 2021

 

Current trend: the pair develops an uptrend

 Silver prices are showing moderate gains during today’s Asian session, developing an uptrend in the short term.

The day before, the XAG/USD pair showed ambiguous trading dynamics, responding to the publication of the neutral minutes of the US Fed meeting. As expected, the regulator kept the main parameters of the monetary policy unchanged and did not disclose its plans regarding the prospects for the gradual curtailment of the quantitative easing program.

The instrument is additionally supported by a rather complex epidemiological situation in certain regions of the world. First of all, the markets are concerned about the surge in the incidence of diseases in India and Japan, which are forced to introduce new restrictive measures, which will negatively affect the pace of global economic recovery.

 Support and Resistance

Bollinger Bands in D1 chart show moderate growth. The price range is actively narrowing, reacting to the emergence of multidirectional dynamics in the short term. MACD indicator is growing preserving a weak buy signal (located above the signal line). Stochastic, which reversed upwards at the beginning of the week, maintains a confident upward direction, signaling in favor of further growth in the silver rate in the nearest future.

 Technical indicators do not contradict the further growth of the instrument in the short and/or ultra-short term.

·         Resistance levels: 26.74, 27.14, 27.65, 28.00.

·         Support levels: 26.27, 26.00, 25.59, 25.00.

 Trading Tips

To open long positions, one can rely on the breakout of 26.74. Take-profit – 27.65. Stop-loss – 26.27. Implementation time: 2-3 days.

 The return of a strong “bearish” trend to the market with a breakdown of 26.00 may be an alternative. Take-profit – 25.00. Stop-loss – 26.50.

 Scenario

Timeframe: Intraday

Recommendation: Buy Stop

Entry Point: 26.77

Take Profit: 27.65

Stop Loss: 26.27

Key Levels: 25.00, 25.59, 26.00, 26.27, 26.74, 27.14, 27.65, 28.00 

Alternative Scenario

Timeframe: Intraday

Recommendation: Sell Stop

Entry Point: 25.97

Take Profit: 25.00

Stop Loss: 26.50

Key Levels: 25.00, 25.59, 26.00, 26.27, 26.74, 27.14, 27.65, 28.00


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