Silver Price Analysis: XAG/USD bulls retreat below $19.00 inside weekly triangle
- Silver consolidates the first weekly gains in eight inside nearly symmetrical triangle.
- Bullish MACD, sustained break of 50-SMA favor buyers.
- 100-SMA, yearly low act as additional trading filters.
Silver price (XAG/USD) struggles to extend the previous day’s run-up during the first positive in eight, picking up bids to $18.85 during Friday’s Asian session.
In doing so, the bright metal keeps the previous day’s breakout of the 50-SMA while staying inside a one-week-old symmetrical triangle.
That said, the metal’s sustained trading beyond 50-SMA and the bullish MACD signals direct buyers towards defying the triangle formation, with an upside break of the resistance line near $19.00.
However, the 100-SMA level of $19.20 acts as an extra filter to the north before directing XAG/USD bulls towards the 38.2% Fibonacci retracement of June 27 to mid-July downturn, near $19.45, as well as the $20.00.
Alternatively, pullback moves remain elusive until the quote stays above 50-SMA support of $18.78.
Following that, $18.50 and the stated triangle’s support line, at $18.25 by the press time, will challenge the silver sellers.
It should be observed that the yearly low surrounding $18.15 and the $18.00 round figure could act as extra supports to watch during the quote’s weakness past $18.25.
In a case where the metal drops below $18.00, it can slump to March 2020 swing high near $17.60.
Silver: Four-hour 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.
