Silver Price Analysis: XAG/USD retreats from key resistance towards $19.00
- Silver price pokes 50-DMA as traders reverse latest gains.
- Monthly support line adds to the downside filters.
- MACD, RSI hints at receding bullish bias, $18.30 appears a tough nut to crack for sellers.
Silver price (XAG/USD) remains pressured around $19.30 while reversing the previous day’s upside momentum heading into Thursday’s European open. In doing so, the bright metal pokes the 50-DMA support while reversing from the downward-sloping resistance line from early June.
Not only the pullback from the key resistance line but the recent retreat of the RSI and the MACD line also keeps the XAG/USD sellers hopeful.
However, an upward sloping support line from September 01, around $19.20, could act as an extra challenge for the metal bears, in addition to the 50-DMA support of $19.30.
In a case where the quote breaks the $19.20 support, a quick fall towards the $19.00 can’t be ruled out.
Following that, a horizontal support area comprising multiple levels marked since mid-July, near $18.30-25, could act as the last defense of silver buyers.
Alternatively, recovery moves need to cross the aforementioned resistance line, at $19.90 by the press time, to convince buyers.
Even so, the monthly high near the $20.00 threshold and the previous month’s peak of $20.87 could challenge the XAG/USD upside afterward.
Silver: Daily 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.
