Silver Price Analysis: XAG/USD pokes $24.50 support amid overbought RSI, bear cross
- Silver Price struggles to defend upside break of yearly horizontal resistance-turned-support.
- Bearish moving average crossover, overbought RSI (14) favor XAG/USD sellers.
- Silver bulls need validation from $25.40 to aim for $26.10-15 resistance area.
Silver Price (XAG/USD) stays defensive around $24.85-90 during early Tuesday in Asia, fading the previous day’s upside break of a seven-month-old horizontal resistance despite the late Monday’s corrective bounce off $24.50 support.
In doing so, the XAG/USD takes clues from the overbought RSI while also justifying the bear cross on the daily chart to tease the commodity sellers. That said, the 50-SMA pierces off the 100-SMA from above and portrays the “bear cross”, which in turn suggests that the Silver buyers are running out of stem.
It’s worth noting, however, that the bullish MACD signals and the aforementioned key support zone, previous resistance surrounding $24.55-50, challenge the Silver bears from entering.
Following that, a quick fall toward the $24.00 round figure can’t be ruled out. However, a convergence of the 50-SMA and 100-SMA, around $23.60-55, will restrict the XAG/USD’s further downside.
On the flip side, Silver buyers need not only to cross the latest peak of $25.00 but should also remain firmer past the $25.40 hurdle comprising multiple levels marked since early April to retake control.
Even so, the double tops bearish formation around the $26.10-15 region appears a tough nut to crack for the XAGA/USD bulls.
Silver Price: 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.
