Silver Price Analysis: XAG/USD remains defensive near $24.00 as bulls approach key hurdles
- Silver edges higher around monthly top, keeps recovery moves from August 08.
- 200-SMA, five-week-old horizontal area test short-term buyers ahead of descending resistance line from July.
- Pullback in Momentum line probe bulls near crucial resistance levels.
- Bears need to wait for a clear break of one-month-old support line.
Silver (XAG/USD) buyers take a breather around the monthly peak above $24.00, near $24.14 during Thursday’s Asian session.
In doing so, the bright metal holds onto the recovery moves from yearly low, flashed during early August even as a pullback in Momentum line challenges the buyers.
It’s worth noting that 200-SMA and a horizontal area comprising multiple levels marked since July 27, respectively around $24.35 and $24.40–50, adds to the silver bull’s hardships.
Even if the commodity prices rally beyond $24.50, a descending resistance line from late July 06, near $24.80, will be a tough nut to crack before confirming the bullish impulse.
Meanwhile, the recent swing low of $23.75 and monthly support line near $23.60 challenge the quote’s pullback moves.
However, a clear downside break of $23.60 won’t hesitate to direct silver bears towards the yearly bottom surrounding $22.15 while also taking a breather around the $22.85 level comprising the August 20 low.
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.
