Silver Price Analysis: XAG/USD struggles below 20-day SMA
|- Silver continues to face downside pressure below the 20-day SMA.
- Additional gains possible if price decisively breaks above the $26.20 level.
- Oversold momentum oscillators warn against aggressive directional bids.
Silver Price (XAG/USD) makes several attempts to move higher but fails to hold onto the upside momentum. Prices move in a very narrow trading band with an upside bias.
At the time of writing, XAG/USD is trading at $26.14, down 0.10% for the day.
XAG/USD daily chart
On the daily chart, the white metal consolidates below the 38.2% Fibonacci retracement level, extending from the low of $23.77.
If price makes sustained moves above the intraday high at $26.19, then it could ditch the earlier day negative price moment.
That said, the first target could be found at the 20-day Simple Moving Average (SMA) at $26.51.
The Moving Average Convergence Divergence (MACD) indicator holds onto the oversold zone with a neutral stance. Any uptick in the MACD would allow bulls to retest the $27.00 horizontal resistance level.
That said, XAG/USD would then aim for the 23.6% Fibonacci retracement level at $27.50.
Alternatively, if price moves lower then it could bring bears into action, with the earlier day’s low of $26.01.
A daily close below the mentioned level would open the gates for the $25.85 horizontal support level.
Multiple support formation near $25.85 makes it a crucial level to trade, a break would meet the next target at April 15 low at $25.32.
XAG/USD additional levels
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