XAG/USD, D1

On the D1 chart, the XAG/USD pair began to adjust upwards from the 50.0% ascending fan line and is now close to the level of 28.45 (38.2% retracement), supported by the central line of Bollinger Bands, overcoming which will allow quotes to continue moving to the levels of 29.80 (23.6% retracement) and 32.10 (0.0% retracement). The key for the "bears" is the level of 26.15 (61.8% retracement, 61.8% line of the ascending fan), at the breakdown of which the downward dynamics will strengthen to the target of 22.47 (100.0% retracement).

Technical indicators allow for a resumption of decline: Bollinger Bands are pointing downwards, MACD is stable in the negative zone, while Stochastic has reached the overbought zone and may reverse down in the near future.

XAG/USD, W1

On the W1 chart, the asset price dropped to the 26.40 mark (38.2% retracement), but was able to consolidate below it and is now adjusting upwards. A breakout of the level of 28.35 (23.6% retracement), supported by the central line of Bollinger Bands, will open the possibility for a return to the level of 31.60 (0.0% retracement). The key for the "bears" remains the level of 26.40, consolidation below which will act as a driver for testing the marks of 24.80 (50.0% retracement) and 23.20 (61.8% retracement).

Technical indicators do not give a clear signal: Bollinger Bands are directed upwards, MACD is decreasing in the positive zone, and Stochastic is reversing up from the oversold zone.

Support and resistance

The short-term downtrend continues, although in the long term, a resumption of price growth is not excluded. With a breakdown of to the level of 26.15 (61.8% retracement, D1), the decline will continue to 24.80 (50.0% retracement, W1) and 23.20 (61.8% retracement, W1). If the trading instrument consolidates above the level of 28.45 ( 38.2% retracement, D1 and 23.6% retracement, W1), the upward dynamics can resume to the area of 29.80 (23.6% retracement, D1) and 31.60 (0.0% retracement, W1).

Resistance levels: 28.45, 29.80, 31.60.

Support levels: 26.15, 24.80, 23.20.

Trading tips

Short positions can be opened below the 26.15 mark with targets of 24.80, 23.20 and stop-loss of 27.20. Implementation period: 5–7 days.

Long positions can be opened above the level of 28.45 with targets of 29.80, 31.60 and stop-loss of 27.30.