Silver Price Analysis: XAG/USD bulls run out of steam, sellers need validation from $24.30
- Silver price stays depressed after downbeat week-start, grinds near highest levels in a year.
- Overbought RSI conditions, receding bullish bias of MACD signals lure bears.
- Failure to cross ascending resistance line from late 2022 adds strength to bearish bias.
- Multiple support lines from March restrict immediate downside ahead of highlighting 100-DMA support.
Silver price (XAG/USD) makes rounds to $24.80-85 during the early hours of Tuesday’s Asian session, following a downbeat start of the week. Even so, the bright metal seesaws around the highest levels since late April 2022 marked in the last week.
That said, the commodity buyers appear running out of steam of late as the RSI (14) turns over overbought and the MACD signals also retreat within the bullish area.
Adding strength to the downside bias is the XAG/USD’s failure to cross an upward-sloping resistance line from late December 2022, close to $25.15 by the press time.
However, two ascending support lines from the previous month, respectively near $24.65 and $24.30, restrict the short-term downside of the Silver price.
Following that, the precious metal’s slump towards the $21.80-75 support zone comprising January’s low and the 100-DMA can’t be ruled out.
Meanwhile, an upside clearance of the aforementioned resistance line, close to $25.15, opens the door for the XAG/USD rally towards the April 2022 peak of $26.22.
In a case where the Silver buyers keep the reins past $26.22, the previous yearly high of around $26.95 and the $27.00 round figure will gain the market’s attention.
Silver price: Daily chart
Trend: Further downside 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.
