Silver Price Analysis: XAG/USD pullback from $25.60 on the cards
- Silver pares the biggest daily gains in a month at weekly top.
- RSI conditions, six-week-old ascending resistance line challenge further upside.
- Bears remain cautious until witnessing a clear break of 200-SMA, 61.8% FE could lure buyers past $25.60.
Silver (XAG/USD) bulls take a breather around $25.30 during Thursday’s Asian session, following a notable run-up to refresh the week’s top.
Although the metal’s sustained trading above the key SMAs and bullish MACD signals favor XAG/USD buyers, an upward sloping trend line from January 20, around $25.60, has been successful in turning down the bulls of late.
Also, favoring the odds of a profit-booking wave is the RSI line that inches closer to overbought territory.
In a case where the silver prices rise past $25.60, the 61.8% Fibonacci Expansion (FE) of February month moves, around $26.00, will be crucial to watch as it holds the key to further rally targeting July 2021 peak of $26.77.
Alternatively, the recent swing low near $24.90 and January’s high of $24.70 could entertain intraday sellers of XAG/USD.
Following that, the 50-SMA and an upward sloping trend line from February 03, respectively around $24.45 and $24.25, will tease silver bears.
It should be noted, however, that a clear downside break of the $24.25 will need validation from the 200-SMA level of $23.60, to portray a short-term bearish trend.
Silver: Four-hour 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.
