Silver Price Analysis: XAG/USD sellers eye two-week-old support line below $27.00
|- Silver fails to respect the bounce off $26.51, drops for the second day.
- Bearish MACD favors the sellers amid risk-on sentiment.
- An eight-day-old resistance line guards immediate upside.
Silver prices remain on the back foot around $26.88, down 0.56% on a day, as markets in Tokyo open for Friday’s trading. The white metal’s failures to keep the one-week high, followed by notable downside, joins bearish MACD to suggest further downside.
As a result, an upward sloping trend line from August 12, near $26.60, gains the intraday sellers’ attention, a break of which will again shift market focus to 21-day EMA level, currently around $26.10.
In a case where the bullion keeps declining past-$26.10, the $26.00 threshold will hold the key to the monthly low near $23.45/40.
Alternatively, buyers will keep hesitating unless the quote stays below a descending trend line from August 18, at $27.83 now.
If at all the bullion crosses the short-term resistance line, the August 18 top near $28.50 and the monthly peak surrounding $29.85 will be important to watch.
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.