Silver Price Analysis: XAG/USD corrective pullback teases $26.00 inside monthly triangle
- Silver consolidates the previous day’s losses, recently bounces off intraday low.
- Strong Momentum keeps traders on the lookout of triangle breakout.
- 200-SMA adds to the upside filters, bears could aim for early April lows on successful breakdown.
Silver (XAG/USD) recovers from intraday low, recently taking rounds to $26.00, amid Wednesday’s Asian session. The bright metal portrays a symmetrical triangle since the start of July amid a strong Momentum line suggesting a decisive break is ahead.
It should, however, be noted that the 200-SMA level of $26.80 acts as an extra filter to the north and keeps the metal buyers cautious even if they manage to cross the $26.30 triangle resistance.
Though, a clear run-up beyond $26.80 will not restrain from challenging the mid-June lows close to $27.40 before targeting the $28.00 and the previous month’s high of $28.55.
Meanwhile, a downside break of $25.85 triangle support will quickly challenge June’s bottom surrounding $25.50 but any further downside will have a bumpy road to the south.
Among the key support past $25.50, lows marked during early March and April surrounding $24.80-70 gain major attention before the silver bears can target the yearly low of $23.77.
Silver: Four-hour chart
Trend: Upside potential diminishes
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.
