Silver (XAG/USD) Takes a Bullish Recess After Hitting a One-Year High

In the early hours of Friday,  silver (XAG) hit a fresh one-year high of $25.80300. At the key price level of $26.00 and the April 18, 2022, price level, the market is having a brief price pullback. During the early part of the European session, the market gives up its little gain and closes to the lower end of its daily range, around the $25.85 area.

The Market From the Indicator’s Point of View: Silver (XAG) Bulls Are Furious

In light of the recent XAGUSD bull rush, the Relative Strength Index (RSI), which indicates the market is in overbought territory, could be a significant barrier preventing traders from placing new long trades. However, the most recent break above the February 2 key resistance level of $24.000 and the continual strong upside performance of the market, even smashing through the $25.000 price level, are adding to the likelihood that the bull market still has more to offer. According to the Bollinger Bands indicator, the likelihood of more bullish performance is strongly supported by this indicator. The upper standard deviation curve, the 20-day moving average, and the lower standard deviation are all moving in an upward direction. The market activities represented by the candlesticks remain within the bands. That means, according to the Bollinger Bands indicator, the market is not overbought.

The current bullish recess is just another opportunity for more Silver buyers to enter the market. Moreover, if the bear market becomes too strong around this resistance level, the bulls will have the $25.00 price level to fall back to as a demand stronghold.

On the other hand, bulls might now hold off on placing new bets and positions for a further advancing move until some follow-through purchasing occurs beyond the daily swing high, around the $26.00 level. The silver market may then advance towards the following pertinent obstacle at the $26.00 price level. This key resistance level should be dealt with before facing up to beating the 2022 high. Once that is done, the next stop for the market will be the $27.00.