Focus on XAGUSD today – 23rdOCT 2024 

In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the XAGUSD for OCT 23rd, 2024. 

Key Takeaways 

• Silver supply shortage: The surge in industrial demand, coupled with the decline in global mine production, has kept silver in a structural shortage for the past four years, with no signs of relief. In 2023, the silver gap reached 184.3 million ounces, and the gap is expected to be even larger in 2024, reaching 215.3 million ounces. The silver gap in recent years has rapidly exhausted the silver supply on the ground, making the silver supply even tighter. 

• Silver short squeeze: As the driving force of silver, gold has continued to hit new highs in the past period of time. In the September article, it was emphasized that the gold-silver ratio is far higher than the average level, making silver far undervalued, and there is a probability of catch-up. And this week’s strong breakthrough of 32.5 exacerbated the short squeeze of silver, which will drive the silver price to soar more significantly. 

Technical Analysis 

Daily Chart Insights 

(XAGUSD Daily Price Chart, Source: Ultima Markets MT4) 

• MACD: The indicator forms a bullish signal again above the 0 axis, which is a typical opportunity to go long in theory. The momentum column has not slowed down, and the long-term bullish trend is clear. 

• Price Action: The trend of silver this week is very important. It broke through the extremely critical 32.5 horizontal resistance level, and also accelerated the breakthrough of the upward channel line. The sharp stop and acceleration of the price action on Tuesday and Wednesday further clarified that the long-term bullish trend of silver will be clear. The next target resistance is around 35.354, the high point in 2012. 

H1 Chart Insights 

(XAGUSD H1 Price Chart, Source: Ultima Markets MT4) 

• MACD: The silver price and the indicator form a top divergence pattern-silver price hit a new high, but the indicator is far below the previous high momentum column. There is a probability that the indicator will send a short signal during the Asian session, so be alert to the probability of a correction trend during the day. 

• Top pattern: Silver formed an M-top pattern during the Asian session, and the upward trend line of the US session is about to be broken. If silver enters an adjustment trend, the first target below is the red 33-period MA, and the second target is the black 65-period MA. 

Pivot Indicator 

(XAGUSD M30 Price Chart, Source: Ultima Markets APP) 

• According to the Ultima Markets APP, the central price of the day is established at 30.10, 

• Bullish Scenario: Bullish sentiment prevails above 30.10, first target 36.30, second target 38.70; 

• Bearish Outlook: In a bearish scenario below 30.10, first target 28.60, second target 26.40. 

Conclusion 

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Disclaimer   

Comments, news, research, analysis, price, and all information contained in the article only serve as general information for readers and do not suggest any advice. Ultima Markets has taken reasonable measures to provide up-to-date information, but cannot guarantee accuracy, and may modify without notice. Ultima Markets will not be responsible for any loss incurred due to the application of the information provided.