Technical Analysis

XAU & XAG Heading Towards Resistance

Technical outlook for the price of gold / silver

  • Gold nicely rallying out of the base model, big resistance test in front
  • Silver the trend remains higher, looking at the resistance towards the 28.30s

Gold and silver price analysis: XAU and XAG are moving towards resistance

Last week, as we looked at gold, it examined support in the 1760 region, and as long as it remained above 1765, it was greater than neutral in bias. In yesterday’s breakthrough over 1799, gold is higher, soon a test of resistance is ahead.

The descent from the 2020 peak, created in August, is an important channel line. Not only is the line itself considered an important threshold, but it coincides with the 1851 moving day average of 1851.

The accumulation of associated resistance should test gold, which may make more sense if it should break out. Rejection is also closely monitored, as low rejection may indicate increased resilience, leading to a breakthrough in the end.

Should gold fall in the near future, support for the recent earlier rise, in 1799, will be monitored, along with the March trend line. This could provide traders with proper risk / return trading in the long run.

Golden daily schedule (towards smooth resistance)

gold agenda card

Gold chart by TradingView

Silver is, of course, similar to gold, but with a few different twists. The current rise develops within an upward sloping channel. The next significant level of resistance is around 28.30 near the line where silver fought at the end of last summer and most recently in February.

In the short term, when the silver returns, the support will be viewed directly in the horizontal plane at about 26.63 and the bottom channel line at the end of March. As long as the lower threshold of the channel remains intact, the upward trading reason also remains.

Silver day schedule (above channel)

silver daily card

Silver table by TradingView

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—Wrote by market analyst Paul Robinson

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