Silver Price Analysis: XAG/USD fades upside momentum beyond $27.00
- Silver struggles to extend the upside beak of monthly falling trend line, eases from $27.30.
- Strong RSI, sustained break of the key resistance, now support, favor the bulls.
- 200-hour EMA joins the trend line to strengthen the support.
Silver prices seesaw near $27.15, up 0.18% on a day, during the early Asian session on Tuesday. Even so, the white metal fails to please the bulls beyond a falling trend line from September 01.
Considering the upbeat RSI conditions, the commodity is likely to remain directed towards the September 10 peak surrounding $27.50 and 61.8% Fibonacci retracement of its early-month drop, around $27.75.
Should the bulls manage to keep the reins past-$27.75, the September 02 high near $28.30 can offer an intermediate halt during the run-up to question the monthly peak surrounding $28.90.
Meanwhile, 200-hour EMA joins the previous resistance line to strengthen $27.00 support. Also challenging the bears is the 23.6% of Fibonacci retracement level around $26.60/55.
In a case where the bullion remains weak past-$26.55, the monthly bottom surrounding $25.85 will return to the chart
Silver hourly chart
Trend: Further recovery 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.
