Silver Price Analysis: XAG/USD bulls seem tiring above $27.00
- Silver holds lower ground after reversing from 10-week high.
- Monday’s ‘Shooting star’ near short-term channel resistance suggests further pullback moves.
- Bullish MACD probe sellers, confluence of 21-day SMA, channel support be the key.
Silver prices remain pressured around $27.30 amid the initial Asian trading session on Tuesday. The white metal rose to the highest since late February the previous day before snapping a two-day winning streak, which in turn portrayed a ‘shooting star’ bearish candlestick formation on the daily (1D) chart.
Given the formation of the key candlestick near the resistance line of a six-week-old rising channel, silver may witness further downside towards the $27.00 threshold.
However, bullish MACD and convergence of 21-day SMA, as well as support line of the stated channel, near $26.35-30, could test the bears afterward.
Meanwhile, the channel’s upper line near $27.80 and Monday’s top of $27.88 may guard the commodity’s short-term upside, a clear trading beyond the same will defy the bearish candlestick formation.
However, silver bulls will wait for a sustained run-up above the late February top near $28.35 before challenging the $30.00 threshold during any further rise past $27.88.
Silver daily chart
Trend: Pullback 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.
