Silver Price Analysis: XAG/USD sellers keep reins around $28.00
- Silver keeps Friday’s pullback from monthly resistance lines.
- MACD signals further weakness towards 50-SMA, 100-SMA confluence.
Silver (XAG/USD) prices remain on the back foot around $27.95 amid the early Asian session on Monday.
In doing so, the bright metal extends Friday’s U-turn from a downward sloping resistance line from May 18 amid the impending bearish cross of the MACD lines and receding strength of bullish histogram.
However, a convergence of 50 and 100-SMA around $27.80, followed by a seven-day-old ascending support line near $27.60, could test the silver bears.
It’s worth noting that a clear downside past $27.60 will make the commodity vulnerable to drop towards the monthly low of $27.00.
On the contrary, the $28.00 threshold guards the quote’s immediate upside ahead of the mentioned resistance line close to $28.10-15.
Additionally, $28.30 and the monthly peak near $28.55 also challenge silver buyers ahead of the previous month’s top surrounding $28.75.
Overall, a short-term triangle formation seems to restrict silver’s immediate moves but the bears do have an upper hand.
Silver four-hour chart
Trend: Further weakness 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.
