Silver Price Analysis: XAG/USD keeps bounce off 50/100-day SMA despite easing from weekly top
- Silver trims early Asian gains after refreshing the weekly high.
- Bearish MACD, one-week-old falling trend line challenge buyers.
- Sellers will wait for a daily closing below the early December high for early.
Silver prices struggle to keep the previous day’s upside momentum even as recovery moves from 50-day and 100-day SMA support refreshed weekly top to $25.68 early in Asian session during Wednesday. That said, the white metal currently eases to $25.56 ahead of the European trading day.
Considering the quote’s inability to magnify the SMA bounce, coupled with bearish MACD, silver sellers may again try to conquer the key SMA convergence around $24.94-$25.00. Also acting as a downside filter is the December 08 high near $24.85.
Although silver bears will aim for the previous month’s low near $22.60 during the commodity’s declines below $24.85, there are multiple lows marked in the second week of December near $23.50 that can offer breathing space to downside momentum.
On the flip side, the $26.00 threshold guards the bullion’s immediate upside ahead of a downward sloping trend line from January 06, at $26.20 now.
Should there be a clear break of $26.20, $27.00, December high near $27.40 and the monthly peak surrounding $27.92 can entertain silver bulls eyeing the $28.00.
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.
