Silver Price Analysis: XAG/USD extends pullback from $25.60 resistance confluence
|- Silver prints two-day downtrend, refreshes intraday low to print mild losses.
- Sluggish momentum line, sustained trading 21-DMA and seven-week-old resistance line favor sellers.
- 200-DMA adds to the upside filters, horizontal area from late March challenge bears.
Silver (XAG/USD) takes offers around $25.35, down 0.22% intraday, amid early Tuesday. In doing so, the quote justifies the previous day’s pullback from a confluence of 21-DMA and a descending trend line from June 11.
Considering the downbeat Momentum line and a sustained U-turn from the key hurdle, silver may stretch the latest declines toward the 25.00 threshold and the $24.70 support level.
However, any further weakness will be challenged by a horizontal area comprising lows marked since late March, near $24.45-50.
It’s worth mentioning that a daily close below $24.45 will make silver prices vulnerable to retest the yearly low surrounding $23.77.
Alternatively, an upside break of $25.60 resistance confluence isn’t a free pass to the silver buyers as a 200-DMA level of $25.90 will act like a tough nut to cross.
Should the bright metal rises past $25.90, also cross the $26.00 threshold, odds of its run-up to July tops near $26.80 can’t be ruled out.
Silver: Daily 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.