Silver Price Analysis: XAG/USD bulls stay hopeful even as MACD flirts with bears
- Silver keeps the bounce off 200-bar SMA inside one-week-old ascending trend channel.
- Multiple failures to break the key SMA joins bullish chart pattern to favor buyers.
- Sellers can aim for monthly low on the downside break of the channel.
Silver prices stay mildly positive while taking rounds to $27.17 during Thursday’s Asian session. The white metal has been trading beyond 200-bar SMA despite the MACD histogram’s recent weakness. Also portraying the commodity’s strength could be an upward sloping trend channel formation since September 09.
As a result, $27.45 and the weekly high near $27.60 can lure silver buyers before highlighting the aforementioned channel’s resistance line, currently around $27.70.
Also acting as an upside barrier is the 61.8% Fibonacci retracement of the early-month declines by the bullion, at $27.73 now.
Alternatively, a 200-bar SMA level of $27.05 offers immediate support to the quote before the channel’s lower line, near $26.80, challenges the sellers.
It should, however, be noted that silver bears’ dominance past-$26.80 will be targeting the monthly low of $25.84.
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.
