Silver Price Analysis: Key SMAs, immediate rising channel test XAG/USD pullback from $26.65 resistance
- Silver fails to recover following the heaviest drop in two weeks.
- 50-day, 100-day SMA restrict immediate downside ahead of monthly ascending trend channel.
- Bullish MACD signals join upbeat catalysts to suggest recovery moves.
- A five-week-old upside hurdle will be the key to watch.
Silver drops back towards $26.00, around $26.10 by the press time, following its failure to consolidate the previous day’s losses during the initial Asian session on Friday.
In doing so, the white metal respects the pullback from a horizontal resistance comprising highs marked on March 18 and April 21.
However, 50-day and 100-day SMAs, respectively around $26.00 and $25.90, challenge the commodity’s latest weakness. Also acting as the key downside barrier is the support line of an ascending channel stretched from March 31, near $25.55.
It should be noted that the bullish MACD and the aforementioned challenges to the bullion’s downside keep silver buyers hopeful towards another confrontation to the $26.65 crucial resistance.
Though, any further upside beyond the multi-day-old horizontal hurdle will be tamed by the upper line of the stated channel formation close to $26.90.
Silver daily chart
Trend: Further recovery 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.
