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Fan Yang

Silver (XAG/USD) is at a Common Support Area Around 15.75

The price of silver in US Dollars, $XAGUSD, has been essentially sideways throughout 2017. The daily chart below shows price fluctuating from a common low around 15.75 to a high around 18.50. 

XAGUSD Daily Chart

(click to enlarge)

- As we can see on the daily chart, silver found buyers when it was around $15.75, though there was a brief crash down to 14.50 in  July.
-  If silver closes below $15.70 this week, I think there is a chance it will continue to slide down to 14.50, and potentially down to the 2015-2016 lows around 13.70. 
- However, if price can close above 16.00, we could see a rebound back to 17.
Long-term View:
- The weekly chart shows that price has come down from almost 50, an all time high before eventually correcting back to 13.50.
- However, the bearish correction has stalled as price rounded up a bottom in 2016. 
- 2017 has been a year of consolidation after that rounded bottom.
- So, as we get into 2018, if XAG/USD trades above 16.00, there is a good chance it will push to 21.50, and possible towards the 25.00 level as a high in the year. 
- Otherwise, if price closes below 15.70 this week, and continues lower, we should monitor the 13.50 area for support. If price breaks that, then the prevailing downtrend is still intact, and price might go to 10.00. 
Bullish Opinion:
- I personally think XAG/USD has upside from these areas around 15.70.
- But, in the short-term, it doesn't seen to have any momentum, so I would not be surprised by a fall to 13.50. But I think going into 2018, XAG/USD will either remain sideways like 2017, or push towards 25. 

XAG/USD Weekly Chart

(click to enlarge)