Silver Price Analysis: XAG/USD drops towards monthly support line around $25.50
|- Silver bounces off intraday low but stays pressured.
- Downbeat MACD, sustained trading below short-term rising trend line favor sellers.
- Confluence of 100, 200-SMA becomes a tough nut to crack for the bears.
Silver fails to extend the corrective pullback from intraday low while staying near $25.90, down 0.30% on a day, during Monday’s Asian session.
The white metal dropped below an ascending support line, now resistance, from April 14 on Friday.
Not only the break of previous support but the downbeat RSI line also direct the silver sellers towards an upward sloping trend from March 31, near $25.65.
However, a convergence of the key SMAs near $25.50 will be the key support to watch during the quote’s further weakness.
Meanwhile, the $26.00 and the previous support line near $26.10 test the commodity’s corrective pullback.
Should silver prices remain positive above $26.10, bulls may struggle around $26.30–40 ahead of refreshing the monthly top of $26.64.
Silver four-hour chart
Trend: Further weakness 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.