Silver Price Analysis: XAG/USD prints inverse head-and-shoulders on 1H
- Silver prints mild gains while piercing 50% Fibonacci retracement of October 06-12 upside.
- 100-HMA offers immediate resistance ahead of confirming the bullish chart pattern on hourly (1H) formation.
- 61.8% Fibonacci Retracement, Thursday’s low can challenge the bears.
Silver tries to keep the day-start gains while taking rounds to $24.20, up 0.22% intraday, during Monday’s Asian session. In doing so, the white metal pierces the 50% Fibonacci retracement level of the early-October upside.
While the upbeat RSI conditions favor the bullion’s further recovery towards the 100-HMA level of $24.32, its additional rise will be tamed by the neckline of the inverse head-and-shoulders patterns, at $24.50 now.
Should silver bulls manage to cross $24.50, the upside favoring chart play can propel the quote towards the $25.00 threshold ahead of challenging the monthly top near $25.55.
Alternatively, the $24.00 round-figure can offer immediate support ahead of the 61.8% Fibonacci retracement level of $23.90.
Also acting as the key supports below $23.90 are Thursday’s low near $23.57 and the monthly bottom surrounding $23.05.
Silver hourly 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.
