Silver Price Analysis: XAG/USD bulls retreat below $19.00 inside weekly triangle
|- Silver consolidates the first weekly gains in eight inside nearly symmetrical triangle.
- Bullish MACD, sustained break of 50-SMA favor buyers.
- 100-SMA, yearly low act as additional trading filters.
Silver price (XAG/USD) struggles to extend the previous day’s run-up during the first positive in eight, picking up bids to $18.85 during Friday’s Asian session.
In doing so, the bright metal keeps the previous day’s breakout of the 50-SMA while staying inside a one-week-old symmetrical triangle.
That said, the metal’s sustained trading beyond 50-SMA and the bullish MACD signals direct buyers towards defying the triangle formation, with an upside break of the resistance line near $19.00.
However, the 100-SMA level of $19.20 acts as an extra filter to the north before directing XAG/USD bulls towards the 38.2% Fibonacci retracement of June 27 to mid-July downturn, near $19.45, as well as the $20.00.
Alternatively, pullback moves remain elusive until the quote stays above 50-SMA support of $18.78.
Following that, $18.50 and the stated triangle’s support line, at $18.25 by the press time, will challenge the silver sellers.
It should be observed that the yearly low surrounding $18.15 and the $18.00 round figure could act as extra supports to watch during the quote’s weakness past $18.25.
In a case where the metal drops below $18.00, it can slump to March 2020 swing high near $17.60.
Silver: Four-hour 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.