Silver Price Analysis: $25.00 support confluence prods XAG/USD sellers
- Silver price remains pressured after easing from the highest level in one year.
- Bearish MACD signals, steady RSI suggests further downside of XAG/USD.
- Convergence of 50-SMA, one-month-old ascending support line challenges Silver sellers.
- XAG/USD buyers can jump back on $25.60 breakout.
Silver price (XAG/USD) remains depressed around $25.30 amid early Monday, after reversing the one-year high and snapping a three-day uptrend on Friday.
The bright metal’s U-turn from a fortnight-old resistance line broke an upward-sloping support line from April 03, now immediate resistance around $25.60.
Apart from that, the bearish MACD signals and the steady RSI, after reversing from overbought territory, also keep the XAG/USD sellers hopeful.
However, a convergence of the 50-SMA and an upward-sloping trend line from the mid-March, around $25.00, appears a tough nut to crack for the Silver sellers to retake control.
Also acting as short-term key support is an area comprising the 100-SMA and early April tops, surrounding $24.25-15.
Meanwhile, the XAG/USD recovery beyond the immediate resistance line, around $25.60, can challenge the aforementioned ascending trend line from early April, around $26.25 by the press time.
Following that, tops marked during April and March of the last year, respectively near $26.25 and $26.95 could gain the market’s attention.
Overall, the Silver price is likely to witness further downside but the bearish trend is still far from sight.
Silver price: Four-hour chart
Trend: Further downside 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.
