Silver Price Analysis: XAG/USD buyers battle one-month-old resistance line
|- Silver fades upside momentum after refreshing the weekly top.
- Confluence of 200-SMA, 38.2% Fibonacci retracement also challenges the bulls.
- Sellers will look for entries below three-week-old horizontal support.
Silver prices waver around $25.30 during Wednesday’s Asian session. In doing so, the white metal buyers confront a downward sloping trend line from March 18 after refreshing the weekly top the previous day.
Although upbeat Momentum favors the quote’s upside break of the stated resistance line, around $25.35, a convergence of 200-SMA and 38.2% Fibonacci retracement level of February 23 to March 31 downside, near $25.52, will be the tough nut to break for the silver bulls.
It should, however, be noted that a clear upside past-$25.52 will propel the quote towards a 61.8% Fibonacci retracement level of $26.60.
Alternatively, pullback moves may aim for the $25.00 threshold whereas 23.6% Fibonacci retracement and a horizontal area comprising multiple lows since March 25, close to $24.65, should restrict the commodity’s further weakness.
In a case where the bullion drops below $24.65, March’s low near $23.77 should gain the market’s attention.
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.