Silver Price Analysis: XAG/USD defends $24.00 even as bears lurking for controls
- Silver keeps the previous day’s bound off weekly low.
- Pullback from 200-day EMA, downside break of a fortnight-old support line favor bears.
- Sellers eye one-month-old ascending trend line, seven-week-long horizontal resistance adds to the upside filters.
Silver (XAG/USD) remains range-bound above $24.00 amid Wednesday’s Asian session. That said, the quote prints $24.15 level after posting the heaviest daily fall in a month while stepping back from 200-day EMA.
In addition to the quote’s U-turn from the key moving average, receding bullish bias of the MACD and a break of an ascending support line from October 13, near $24.25 by the press time, also favor sellers.
Hence, the bright metal seems set to retest the monthly support line, around $23.50. However, the $24.00 threshold may offer an intermediate halt during the fall.
It should be observed that a clear downside past $23.50 won’t hesitate to break the $23.00 round figure.
On the flip side, an upside clearance of the previous support line close to $24.25 will aim for the 200-day EMA level of $24.55 before directing the XAG/USD bulls toward a horizontal area established since early September around $24.80-90.
In a case where the silver prices remain firmer past $24.90, the $25.00 psychological magnet and August month’s high of $26.00 will be in focus.
Silver: Daily chart
Trend: Further weakness 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.
