Silver Price Analysis: XAG/USD bullish impulsive up for a test near $26.50
|- Silver seesaws around two-week top, battles key DMAs.
- Firmer RSI, sustained recovery from 200-DMA favor bulls.
- Descending trend line from May 18 adds to the upside filters.
Silver (XAG/USD) prints a three-day uptrend, teasing the highest levels since June 18, ahead of Tuesday’s European session. That said, the bright metal confronts 21-DMA while struggling to extend the 100-DMA breakout.
The commodity’s successful recovery from 200-DMA and 61.8% Fibonacci retracement of March-end to May upside keep buyers hopeful.
However, a daily closing past $26.60, comprising 21-DMA, becomes necessary for the bulls to aim for the early June’s low near the $27.00 threshold. Even so, a downward sloping trend line from May, near $27.32, will challenge the silver buyers.
Alternatively, pullback moves may rest on the 50% Fibonacci retracement level of $26.25 before retesting the 200-DMA level of $25.77.
It’s worth noting that the quote’s weakness past $25.77 will be tested by 61.8% Fibonacci retracement level and the previous month’s low, respectively around $25.65 and $25.50.
To sum up, silver stays on the bumpy road of consolidation.
Silver daily chart
Trend: Further recovery expected
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