Silver Price Analysis: XAG/USD bounces off 21-DMA to snap three-day downtrend
- Silver consolidates recent losses near two-week low, hovers around intraday high of late.
- Upbeat RSI, sustained U-turn from short-term key moving average favor buyers.
- Previous support line from early February tests recovery moves, 200-DMA appears tough nut to crack for sellers.
Silver (XAG/USD) prices keep the U-turn from 21-DMA while teasing $25.00 during Wednesday’s Asian session. In doing so, the bright metal recovers from a fortnight low, marked the previous day, to print the first positive day in four.
Given the quote’s successful bounce off the short-term DMA and the above-50 RSI line, XAG/USD may extend the latest rebound towards 50% Fibonacci retracement (Fibo.) of May-October 2021 downside, near $25.10.
However, the support-turned-resistance line from February 03, near $25.35 by the press time, will challenge the commodity bulls afterward.
Even if the silver buyers manage to cross the $25.35 hurdle, the 61.8% Fibo. will precede the monthly high, respectively around $25.95 and $26.95, to challenge the further upside.
Alternatively, a daily closing below the 21-DMA level of $24.90 will drag the XAG/USD prices to the 38.2% Fibonacci retracement level of $24.20.
Though, the 200-DMA, around $24.00 by the press time, will challenge the bullion’s additional declines.
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.
