Silver Price Analysis: XAG/USD needs $24.05 breakout to keep buyers hopeful
- Silver stays mildly bid above 50-SMA, weekly support line.
- Strong RSI, sustained recovery from yearly low favor buyers.
- 13-day-old horizontal area, 200-SMA challenge further upside, ascending trend line from August 06 adds to the downside filters.
Silver (XAG/USD) flirts with an intraday top of $23.87, up 0.10% on a day, during Thursday’s Asian session. In doing so, the bright metal wobbles around the weekly top, not to forget its battle with a horizontal area comprising multiple highs marked since August 09.
Given the strong RSI line, not overbought, coupled with the commodity’s successful trading above 50-SMA and a rising trend line from the last Friday, silver prices are likely to remain firm.
However, a clear upside break of the stated immediate hurdle surrounding $23.95–$24.05 becomes necessary for the buyers to keep reins.
Following that, the 200-SMA level of $24.65 and the $25.30 may entertain the traders ahead of directing them to the monthly peak surrounding $26.00.
Alternatively, the stated weekly support line near $23.70 and 50-SMA level of $23.55 can challenge silver’s pullback moves.
Though, the bears are less likely to be convinced until witnessing a clear downside break of a three-week-old rising support line, around $23.10.
Silver: Four-hour chart
Trend: Further upside 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.
