Silver Price Analysis: XAG/USD retreats towards $25.00 but bulls keep reins
- Silver pares weekly gains after two-day downtrend but stays above key supports.
- One-month-old ascending trend line, 200-DMA restricts short-term downside.
- Horizontal area from June, 61.8% Fibonacci retracement challenge buyers.
- MACD, sustained trading beyond the key levels keep buyers hopeful.
Silver (XAG/USD) remains pressured towards $25.00 amid the early Asian session on Friday, after a two-day losing streak.
Even so, the metal buyers stay positive as MACD flashes bullish signals as the prices are way beyond the short-term key supports.
That said, the latest pullback from a horizontal area from June 21, 2021, around $25.50-55, directs the silver sellers towards a 50% Fibonacci retracement (Fibo.) level of May-September 2021 downside near $25.00.
However, an upward sloping support line from early February and the 200-DMA, respectively around $24.50 and $24.10, will challenge XAG/USD downside afterward.
In a case where silver prices drop below $24.10, odds of witnessing further declines towards the latest 2021 peak near $23.40 and then to the $23.00 threshold can’t be ruled out.
Alternatively, recovery moves need to cross the immediate horizontal area near $25.50-55 before challenging the 61.8% Fibo. level close to $26.00.
Following that, July 2021 high near $26.80 should lure the silver buyers.
Silver: Daily 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.
