Silver Price Analysis: 50-day EMA probes XAG/USD bounce off multi-day low
|- Silver recovers from 14-week low to regain $25.00.
- Sustained break of two-month-old support line keeps sellers hopeful.
- The key Fibonacci retracements, 100-day EMA offer short-term support.
Silver prices take the bids near $25.20, up 1.8% intraday, during Monday’s Asian session. In doing so, the white metal trims the previous day’s losses, the biggest since August 11, which dragged it to the multi-day bottom.
While the downside break of an ascending trend line from July 28 triggered the bullion’s fall, bearish MACD and 50-day EMA seem to restrict silver’s latest recovery moves.
Other than the $25.17 EMA resistance, the September 05 low near $25.85 will also challenge the buyers’ attempt to regain the status beyond an upward sloping trend line, previous support, around $26.55.
On the flip side, 50% and 61.8% Fibonacci retracements of the metal’s run-up between June and August, respectively around $23.40 and $21.85, will be the key levels on the bears’ radars.
Also acting as downside support for silver traders could be the 100-day EMA level of $22.76 and lows marked during late-July near $22.30/25.
Silver daily chart
Trend: Bearish
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