Silver Price Analysis: XAG/USD eases from two-week high, $27.00 defends short-term bulls
- Silver takes a U-turn from 28.16, flashes a two-day winning streak.
- Sustained trading above 21-day SMA restricts the sellers’ entry.
- Bearish MACD, sluggish RSI may play their roles around August 18 top.
Having initially surged to the highest since August 18, Silver prices recede to $27.85 during Monday’s Asian session. Even so, the white metal flashes 1.30% gains while rising for the second day in a row.
Also portraying the strength of the buying momentum is the quote’s successful trading past-21-day SMA since June 2020. On the contrary, MACD and RSI conditions are suggesting a pullback.
As a result, the bulls may wait for a clear break of the mid-August peak surrounding $28.50 for fresh entries. In doing so, the current monthly high near $29.85 and $30.00 will be on their radars.
Meanwhile, a downside break of a 21-day SMA level of $27.00 can trigger the quote’s fresh declines targeting the previous week’s low around $26.00.
It should be noted that 61.8% and 50% Fibonacci retracements of the bullion’s declines from August 7 to 12, respectively near $27.40 and $26.60, act as additional filters to the downside.
Silver daily chart
Trend: Pullback 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.
