Silver Price Analysis: XAG/USD buyers take a breather before challenging $26.00
- Silver price to remain range-bound around $25.00-$25.50 as oscillators neutralize.
- XAG/USD Price Analysis: Upward biased above $25.00, and it can test $27.00; otherwise, it could dive towards $23.50.
Silver price stays firm at around $25.20, consolidating for the third day in a row, as the Relative Strength Index (RSI) gets out of the overbought territory. Therefore, the XAG/USD lost traction on its way toward $26.00 a troy ounce, but the uptrend stays in play. The XAG/USD is trading at $26.26, a gain of 0.11%.
XAG/USD Price Action
The XAG/USD is trading sideways after recovering from Wednesday’s dip toward $24.65. Even though it looks like a hammer, price action on Thursday was sideways as a classic doji emerged. As the RSI exited overbought conditions, its slope is aiming lower, meaning that sellers are gathering momentum. Meanwhile, the Rate of Change (RoC) portrays bulls jumping off the boat as buying pressure fades.
If XAG/USD remains above $25.00, in the near term, it will test the YTD high at $26.08. A breach of the latter will expose the $26.50 before the XAG/USD tests the last year’s high at $26.94, ahead of reaching $27.00.
On the other hand, the XAG/USD first support would be $25.00. Once broken, the following demand zone would be the April 19 low at $24.65, followed by the $24.00 psychological price level. A dip beyond this area will tumble Silver toward the 50-day EMA at $23.58.
XAG/USD Daily Chart
Author
Christian Borjon Valencia
FXStreet
Christian Borjon began his career as a retail trader in 2010, mainly focused on technical analysis and strategies around it. He started as a swing trader, as he used to work in another industry unrelated to the financial markets.
