Silver Bulls Threaten Bearish Setup After Fed Hike
The silver price has been threatened by a potential bearish setup after the Federal Reserve's recent hike. However, bulls are still present and could push the metal towards reclaiming $70.00. The first resistance level for XAG/USD is the 100-day Simple Moving Average (SMA) at $66.56. A breach of this level would expose the $67.00 mark as a potential target. Above these levels, the 200-day SMA at $73.16 sits waiting.
If silver were to dive below the 'head and shoulders' neckline, it could clear the way for a potential resumption of the downtrend. The first line of defense would be the 50-day SMA at $62.86, ahead of the March 23 swing low at $61.01 and then the $60.00 mark. Below this next support lies the 'head-and-shoulders' measured objective near $55.00.
Silver is a precious metal that has been historically used as a store of value and a medium of exchange. It can be traded through vehicles such as Exchange Traded Funds, which track its price on international markets. The silver price can move due to various factors, including geopolitical instability or fears of a deep recession.