Silver Price Analysis: XAG/USD probes short-term triangle resistance above $23.50
- Silver prices extend recoveries from 200-hour EMA to attack a three-day-old resistance line.
- An upward sloping trend line from July 22 adds to the downside support.
- Bullish MACD, safe-haven demand of the metal favor the bulls.
Silver prices snap three-day losing streak while rising to $23.64, up 0.66% on a day, ahead of Friday’s European session. In doing so, the white metal aims to confirm further upside by targeting the upper line of an immediate symmetrical triangle.
Considering the current increase in the market’s risk-off mood, coupled with an increase in the safe-haven demand backed by the US dollar’s fall, the metal prices are likely to please the buyers with a $25.00 mark on a successful break above $23.86 immediate resistance.
However, the quote’s further upside depends upon how well it can stay past-$26.00, which in turn opens the gate for extended north-run targeting the early-April 2013 low near $26.70 and the April 2013 top surrounding $28.10.
Alternatively, 200-hour EMA and a week-old rising trend line restrict the metal’s immediate declines near $23.00-22.95, a break of which can recall sellers aiming for July 22 low of $21.38.
In a case where the bears dominate past-$21.38, $20.00 and the mid-July tops near $19.50 will gain the market attention.
Silver hourly 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.
