Silver Price Analysis: XAG/USD drops towards monthly support line around $25.50
- Silver bounces off intraday low but stays pressured.
- Downbeat MACD, sustained trading below short-term rising trend line favor sellers.
- Confluence of 100, 200-SMA becomes a tough nut to crack for the bears.
Silver fails to extend the corrective pullback from intraday low while staying near $25.90, down 0.30% on a day, during Monday’s Asian session.
The white metal dropped below an ascending support line, now resistance, from April 14 on Friday.
Not only the break of previous support but the downbeat RSI line also direct the silver sellers towards an upward sloping trend from March 31, near $25.65.
However, a convergence of the key SMAs near $25.50 will be the key support to watch during the quote’s further weakness.
Meanwhile, the $26.00 and the previous support line near $26.10 test the commodity’s corrective pullback.
Should silver prices remain positive above $26.10, bulls may struggle around $26.30–40 ahead of refreshing the monthly top of $26.64.
Silver four-hour 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.
