Silver Price Analysis: XAG/USD approaches multi-month tops near $26.20
- Silver makes a comeback from the lows of $25.55 earlier in the week.
- XAG/USD trades below the 100-day SMA indicating a bearish outlook.
- Oversold momentum oscillators warn against aggressive directional bids.
After a steep fall from the high of $28.02 since June 14, silver prices (XAG/USD) consolidated near the $25.70 level.
At the time of writing, XAG/USD is trading at $26.07, up 0.52% for the day.
XAG/USD daily chart
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On the daily chart, the white metal has been in a consistent upward trend from the low of $23.77. The break of the ascending trendline from the mentioned level mark a heavy correction in prices on profit taking.
The formation of Doji candlesticks signals sellers losing their stream near $ 25.70. Now, if price makes a sustained move above the session’s high then it could target April 26 high at $26.22.
The Moving Average Convergence Divergence ( MACD) indicator holds onto the oversold zone with stretched selling conditions. Any uptick in the MACD would allow bulls to take over the 100-day SMA at $26.50.
That said, a daily close above the 100-day SMA could mean the continuation of the earlier upside movement with the high of June 17 at $27.24 as the next target for XAG/USD bulls.
Alternatively, if price moves lower, then the immediate support emerges at the previous day’s low at $25.81
Market participants are then encouraged to retest June 21 low at $25.55 followed by the $25.00 horizontal support level.
XAG/USD additional levels
Author
Rekha Chauhan
Independent Analyst
Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.
