Silver Price Analysis: XAG/USD stays mildly bid around $18.50 inside weekly bullish channel
|- Silver price portrays a three-day uptrend inside a bullish chart formation.
- Sustained trading beyond 200-HMA, firmer oscillators keep buyers hopeful.
- Sellers need a clear downside break of $18.00 to retake control.
Silver price (XAG/USD) remains firmer around an eight-day top, recently picking up bids to $18.60 during Friday’s Asian session. In doing so, the bright metal extends the run-up beyond the 200-HMA while staying inside an upward-sloping trend channel established since August 31.
The metal’s sustained trading beyond the key HMA, as well as trading inside the bullish channel, also justifies the firmer RSI (14), not overbought, to favor the buyers. Also suggesting the quote’s further upside is the impending bull cross on the MACD.
That said, the stated channel’s upper line near $18.70 appears to challenge the intraday buyers of the XAG/USD.
Following that, the 61.8% Fibonacci retracement level of August 26 to September 01 moves, near $18.75, will precede the $19.00 threshold to limit the metal’s upside moves before directing it to the August 26 swing high near $19.45.
Alternatively, a downside break of the 200-HMA, near $18.20 by the press time, could quickly drag the quote towards the aforementioned channel’s support line, at the $18.00 round figure. Also increasing the strength of the $18.00 support is the 23.6% Fibonacci retracement level.
Should the quote drops below $18.00, the yearly low of $17.56, marked earlier in the month, will be crucial to watch.
Silver: Hourly chart
Trend: Further upside 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.