Silver Price Analysis: XAG/USD fades bounce off 50-SMA but bullish impulse remains intact
- Silver steps back from intraday top, stays mildly bid.
- Sustained trading above the key SMAs and trend line support favor silver buyers.
- Bears need to conquer five-week-old horizontal support for conviction.
Silver (XAG/USD) consolidates the previous day’s heavy losses, the biggest since March 30, around $27.18, up 0.47% intraday, during early Thursday.
Even so, the bright metal eases from the intraday high while struggling to keep the rebound from 50-SMA.
Although downbeat RSI and challenges to market sentiment suggest further weakness of the commodity prices, 50-SMA level of $27.00 and an ascending support line from March 31, close to $26.50, restrict silver’s short-term downside.
Also acting as the strong filters to the south is 200-SMA near $25.85 and a horizontal line comprising early April tops and lows marked during late last month, near $25.60.
It should, however, be noted that the weekly resistance line surrounding $27.45-50 guards the metal’s immediate recovery moves.
If at all the silver bulls keep remains above $27.50, the monthly peak around $27.90 and the $28.00 round figure may test the quote’s further upside.
Silver four-hour chart
Trend: Bullish
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.
