Silver Price Analysis: XAG/USD consolidates the pullback from 7.5-year highs of $29.86
|- Silver trapped between two key barriers hourly chart.
- Hourly RSI has turned flat while steadying at midline.
- Downside appears more compelling in the near-term.
Silver (XAG/USD) extended the ongoing relentless rally and recorded fresh 7.5-year highs at $29.86 in the Asian trades before correcting $2 to $$27.88.
The spot remains in a consolidative mode, with the upside attempts capped near $28.60/80 region, which is the confluence of the 21-hourly Simple Moving Average (HMA) and 23.6% Fibonacci (Fib) Retracement of the fresh rally to multi-year tops seen from August 4.
A sustained break above the 21-HMA could trigger a renewed upside towards the $29.85/30 levels.
Alternatively, to the downside, powerful support awaits at $27.70, the convergence of the 50-HMA and 38.2% Fib of the same advance.
The Fib 50% level at $27.02 will offer the next cushion should the selling pressure intensify.
The hourly Relative Strength Index (RSI) holds steady at the midline, suggesting a lack of clear directional bias. However, with the corrective pullback and overbought conditions on the daily chart, the downside appears more compelling.
Silver: XAG/USD hourly chart
Silver additional levels
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.