Silver Price Analysis: XAG/USD extends pullback from $25.60 resistance confluence
- Silver prints two-day downtrend, refreshes intraday low to print mild losses.
- Sluggish momentum line, sustained trading 21-DMA and seven-week-old resistance line favor sellers.
- 200-DMA adds to the upside filters, horizontal area from late March challenge bears.
Silver (XAG/USD) takes offers around $25.35, down 0.22% intraday, amid early Tuesday. In doing so, the quote justifies the previous day’s pullback from a confluence of 21-DMA and a descending trend line from June 11.
Considering the downbeat Momentum line and a sustained U-turn from the key hurdle, silver may stretch the latest declines toward the 25.00 threshold and the $24.70 support level.
However, any further weakness will be challenged by a horizontal area comprising lows marked since late March, near $24.45-50.
It’s worth mentioning that a daily close below $24.45 will make silver prices vulnerable to retest the yearly low surrounding $23.77.
Alternatively, an upside break of $25.60 resistance confluence isn’t a free pass to the silver buyers as a 200-DMA level of $25.90 will act like a tough nut to cross.
Should the bright metal rises past $25.90, also cross the $26.00 threshold, odds of its run-up to July tops near $26.80 can’t be ruled out.
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.
