Technical Analytics Report

XAG/USD: Technical Analysis Report 31 March 2021

XAG/USD: Technical Analysis Report 31 March 2021

 

Current trend: investors prefer bonds

The price of silver contracts decreases, trading just above $23.8 per ounce.

The prices of all shelter assets, which include silver, fell sharply yesterday. The main reason for such dynamics is another surge in the bond market. Yesterday, the yield on 10-year securities reached its highs of the last year, amounting to 1.769%. Investors are encouraged by statements by US President Joe Biden about a significant increase in vaccination rates and additional support measures, which gives hope for early recovery of the national economy to pre-crisis levels.

 Now bond yields have moved from their peaks and are at 1.733%, which is still a very high level, provoking an outflow of capital from shelter assets, including from precious metals, into more reliable bonds.

 Support and Resistance

 Globally, the price is decreasing within the next wave. Technical indicators maintain a strong sell signal. Alligator indicator’s EMA fluctuations range is expanding, and the histogram of the AO oscillator forms downwards bars, moving below the zero line.

Resistance levels: 25.10, 28.20.

Support levels: 23.23, 21.00.

 Trading Tips

 After decline and consolidation below the local support of 23.23, sell positions with a target at 21.00 are relevant. Stop loss is 24.00, above the current price. Implementation period: 7 days or more.

 After consolidation above the local resistance around 25.10, buy positions with the target at 28.20 will be relevant. Stop loss is 24.00, below the local support.

 Scenario

 Timeframe: Weekly

Recommendation: Sell Stop

Entry Point: 23.23

Take Profit: 21.00

Stop Loss: 24.00

Key Levels: 21.00, 23.23, 25.10, 28.20

 Alternative Scenario

 Timeframe: Weekly

Recommendation: BUY STOP

Entry Point: 25.10

Take Profit: 28.20

Stop Loss: 24.00

Key Levels: 21.00, 23.23, 25.10, 28.20

 

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