Silver Price Analysis: XAG/USD remains depressed near $25.00 within bearish channel
- Silver price treats while fading late Wednesday’s corrective bounce.
- Eight-day-old descending trend channel, sustained trading below 200-HMA keeps XAG/USD bears hopeful.
- Absence of oversold RSI adds strength to the bearish bias.
- Silver price recovery needs validation from $25.70 to convince buyers.
Silver price (XAG/USD) drops to $24.90 as it fades the latest corrective bounce amid the early hours of Thursday’s Asian session. In doing so, the bright metal remains inside an eight-day-old downward-sloping trend channel, as well as staying below the 200-Hour Moving Average (HMA).
Not only the bearish chart formation and the sustained trading below the 200-HMA but bearish MACD signals and an absence of the oversold RSI (14) also favor the XAG/USD. It’s worth noting, however, that the below 50 level of the RSI line suggests a bumpy road towards the south.
That said, the 61.8% Fibonacci retracement level of the XAG/USD’s upside between April 03 and 14, near $24.50, appears the immediate support for the Silver price to test.
However, the $25.00 round figure and the aforementioned channel’s bottom line, close to $24.40, seem tough nuts to crack for the commodity sellers, which if broken could make the quote vulnerable to refreshing the monthly low, currently around $23.55.
On the flip side, a convergence of the 200-HMA and 38.2% Fibonacci retracement level guards short-term Silver price upside near $25.10.
Following that, the stated bearish channel’s top line, near $25.25 by the press time, will be in focus.
It should be observed that the XAG/USD run-up beyond $25.25 isn’t an open invitation to the Silver bulls as the $25.70 hurdle comprising the levels marked during mid-April can prod the upside momentum.
Silver Price: Hourly chart
Trend: Further downside 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.
