Silver Price Analysis: XAG/USD bears keep $18.20 on radar despite latest rebound
- Silver price snaps five-day losing streak while bouncing off fortnight low.
- MACD, RSI suggest further recovery but the key SMAs challenge upside momentum.
- Six-week-old support line lures the bears unless the quote rises past $19.50.
Silver price (XAG/USD) prints the first daily gain in six while keeping the previous day’s rebound near $19.00 during early Friday morning in Europe. In doing so, the bright metal seesaws around the 61.8% Fibonacci retracement level of September-October upside, recently retreating from the intraday high.
It’s worth noting that the impending bull cross on the MACD and the RSI’s latest recovery from the oversold territory keeps the buyers hopeful. However, the 200-SMA and the 100-SMA challenge the metal’s short-term upside near $19.15 and $19.50 respectively.
Even if the XAG/USD rises past $19.50, the bulls will have a tough task crossing a one-month-old resistance area between $19.95 and $20.00.
Meanwhile, pullback moves may initially aim for the latest swing low surrounding $18.45 ahead of challenging an upward-sloping support line from September 01, close to $18.20.
Following that, $17.95 and the previous monthly low of $17.56 should lure the silver bear.
To sum up, XAG/USD remains on the bear’s table even if the prices witness a corrective bounce of late.
Silver: Four-hour chart
Trend: Further weakness 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.
