Silver Price Analysis: $23.00 resistance confluence prods XAG/USD bulls at weekly top
- Silver Price struggles to defend four-day uptrend, retreats from the highest levels in a week of late.
- Convergence of 200-EMA, 50% Fibonacci retracement challenges intraday XAG/USD bulls.
- Below 50.0 RSI suggests bottom-picking around the golden Fibonacci ratio.
- Multiple hurdles stand tall to challenge Silver buyers.
Silver Price (XAG/USD) struggles to defend the four-day-old winning streak as it retreats from the weekly top surrounding $23.10 to $22.90 during early Wednesday. In doing so, the bright metal portrays the failure to cross the $23.00 key upside hurdle amid bearish MACD signals.
However, the RSI (14) condition, which is below the 50.0 level, can trigger the Silver Price rebound from the 61.8% Fibonacci retracement, also known as the golden Fibonacci ratio, of the quote’s March-May upside, close to $22.25.
Following that, the $22.00 round figure and the early March swing high of $21.30 may prod the Silver sellers before directing them to the yearly low marked in March around $19.90. It’s worth noting that the $21.00 and the $20.00 round figures may act as intermediate halts during the anticipated fall in the XAG/USD price.
Alternatively, a daily closing beyond the $23.00 resistance confluence comprising the 200-Exponential Moving Average (EMA) and 50% Fibonacci retracement, needs validation from the latest peak of $23.10 to convince the Silver buyers.
Even so, a two-week-old descending resistance line and the previous support line from March, respectively near $23.80 and $23.90, quickly followed by the $24.00 threshold, can prod the XAG/USD upside.
Above all, the Silver buyers should remain cautious unless witnessing a daily closing beyond the horizontal area comprising multiple levels marked since early January 2022, near $24.50-60.
Silver Price: Daily chart
Trend: Pullback expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
