Silver Price Analysis: XAG/USD bounces off six-week-old support towards $24.00
- Silver Price again aims to cross 200-SMA hurdle, defends recovery from multi-day-old support line.
- Steady oscillators suggest slower grind towards one-week-long falling resistance line.
- 61.8% Fibonacci retracement, previous weekly low act as additional trading filters.
Silver Price (XAG/USD) stays defensive around $23.60 amid early Monday in Asia, keeping the previous day’s rebound from the six-week-old support line below the 200-SMA hurdle. In doing so, the XAG/USD seeks fresh clues to extend the three-week downtrend.
Given the steady RSI (14) line and the recently bullish MACD signals, the Silver Price is likely to extend the latest rebound from an upward-sloping support line from late June, close to $23.20. However, a clear upside break of the 200-SMA hurdle of around $23.80 becomes necessary for the XAG/USD buyer’s conviction.
Following that, the $24.00 round figure and a one-week-long descending resistance line can check the Silver bulls before directing them to the $25.00 round figure and then to the previous monthly high of around $25.30.
On the flip side, the 61.8% Fibonacci retracement of the XAG/USD’s late June to early July upside, near $23.30, offers immediate support to the Silver Price before the previously stated key trend line support of around $23.20.
In a case where the Silver Price breaks the $23.20 support, the $23.00 threshold may act as the final defense of the buyers before giving control to the XAG/USD bears.
Silver Price: Four-hour chart
Trend: Further upside 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.
