Silver Price Analysis: XAG/USD bulls appear well set to prod $24.50 hurdle
- Silver Price remains firmer at monthly high after crossing the 200-SMA.
- Upside break of previous key resistance area, bullish MACD signals suggest further advances of XAG/USD.
- Overbought RSI hints at limited upside room and highlights lows marked during late April as immediate resistance.
Silver Price (XAG/USD) grinds near the highest level in a month, making rounds to $24.30 early Friday morning. In doing so, the bright metal cheers upside break of the 200-SMA amid a bullish MACD signal.
Adding strength to the upside bias is the XAG/USD run-up beyond the previously important resistance zone of around $24.00-24.05.
However, the nearly overbought RSI conditions challenge the Silver buyers as they approach a horizontal hurdle comprising lows marked during late April, around $24.50. Also acting as an upside filter is the May 02 bottom surrounding $24.60.
Following that, a run-up towards $26.00 and the previous monthly high of around $26.15 can’t be ruled out.
On the flip side, a break of the 200-SMA level of $24.20 could quickly recall the XAG/USD sellers targeting the $24.05-24.00 resistance-turned-support.
In a case where the Silver Price remains bearish past $24.00, a fortnight-old ascending trend line near $23.50 can act as the last defense of the XAG/USD buyers.
Overall, the Silver Price is likely to remain firmer but the upside room appears limited as the US Dollar bears take a breather.
Also read: US Dollar Index: DXY suffers from downbeat US data, pre-Fed positioning at 13-day low near 103.30
Silver Price: Four-hour chart
Trend: Limited 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.
