Silver Price Analysis: XAG/USD drops over 1.0% to retest 21-day SMA
- Silver prices fail to keep Friday’s bounce off $26.04.
- Lower high formation favor sellers inside short-term symmetrical triangle.
- Break of two-week-old resistance line can trigger fresh buying.
Silver remains sluggish around $26.45, down 1.27% on a day, before the European markets open for Monday’s trading. The white metal bounced off 21-day SMA on Friday but the failure to keep the same dragged the quote back to the short-term key SMA level.
While sellers may wait for the clear break below 21-day SMA level of $26.25, a lower high formation since the early-August joins bearish MACD to keep the bulls away.
Even so, the commodity’s weakness past-$26.25 will have to slip below an ascending trend line from July 28, at $24.25, to please the pessimists with 50-day SMA around $22.00.
Alternatively, an upside break of the descending trend line from August 07, at $27.45 now, will have to cross $28.50 before attacking the monthly high of $29.85.
Also acting as an upside barrier beyond $29.85 will be $30.00 and late-January 2013 bottom around $30.75.
Silver daily chart
Trend: Further declines 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.
