Silver Price Analysis: XAG/USD bounces off 21-DMA to snap three-day downtrend
|- Silver consolidates recent losses near two-week low, hovers around intraday high of late.
- Upbeat RSI, sustained U-turn from short-term key moving average favor buyers.
- Previous support line from early February tests recovery moves, 200-DMA appears tough nut to crack for sellers.
Silver (XAG/USD) prices keep the U-turn from 21-DMA while teasing $25.00 during Wednesday’s Asian session. In doing so, the bright metal recovers from a fortnight low, marked the previous day, to print the first positive day in four.
Given the quote’s successful bounce off the short-term DMA and the above-50 RSI line, XAG/USD may extend the latest rebound towards 50% Fibonacci retracement (Fibo.) of May-October 2021 downside, near $25.10.
However, the support-turned-resistance line from February 03, near $25.35 by the press time, will challenge the commodity bulls afterward.
Even if the silver buyers manage to cross the $25.35 hurdle, the 61.8% Fibo. will precede the monthly high, respectively around $25.95 and $26.95, to challenge the further upside.
Alternatively, a daily closing below the 21-DMA level of $24.90 will drag the XAG/USD prices to the 38.2% Fibonacci retracement level of $24.20.
Though, the 200-DMA, around $24.00 by the press time, will challenge the bullion’s additional declines.
Silver: Daily chart
Trend: Further recovery expected
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.