Silver Price Analysis: XAG/USD eyes re-test of previous resistance around $23.10
- Silver prints mild losses, battles 200-bar SMA amid receding RSI conditions.
- Sustained break of one-month-old falling trend line keeps buyers hopeful unless breaking the support line.
Silver drops to $23.96, down 0.68% intraday, during the early Friday. The white metal failed to cross 200-bar SMA the previous day while keeping Tuesday’s upside break of a falling trend line from November 06.
Considering the receding RSI conditions and repeated failures to rise past- 200-bar SMA, silver sellers currently eye the previous resistance line, at $23.09 now, during the further downside.
However, any extra weakness below $23.09 will have to break the $23.00 threshold while eyeing November’s bottom near $21.90.
Alternatively, an upside clearance of 200-bar SMA, currently around $24.10, needs validation from the recent high near $24.30 before targeting the mid-November high near $25.10.
Although expected uptick in the RSI can reach the overbought territory around $25.10, which in turn can probe the silver bulls, a further rise beyond the same will not hesitate to challenge the previous month’s high near $26.00.
Silver four-hour 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.
