Silver Price Analysis: XAG/USD stays bullish despite latest pullback from $23.00
- Silver price pares intraday gains at the highest level in a week during three-day uptrend.
- Overbought RSI prods XAG/USD bulls below $23.30-25 resistance confluence.
- Sellers need validation from three-day-old resistance line, 100-HMA.
Silver Price (XAG/USD) remains on the front foot at around $22.95 as it remains firmer for the third consecutive day despite the latest retreat from the intraday high. The quote’s latest pullback could be linked to the overbought RSI (14).
However, the looming bull cross on the MACD and the XAG/USD’s sustained trading beyond the 100-Hour Moving Average (HMA), as well as an ascending trend line from Friday, keeps the Silver buyers hopeful.
As a result, the XAG/USD bulls are all set to prod the convergence of the 200-HMA and a three-week-old horizontal resistance area surrounding $23.30.
Following that, the June 13 swing low of around $23.60 and a downward-sloping resistance line from June 09, close to $23.85 at the latest, could challenge the Silver buyers before directing them to the monthly high of around $24.55.
On the contrary, the aforementioned rising support line from Friday, near $22.80 by the press time, restricts the immediate downside of the Silver price. Also acting as a short-term downside filter is the 100-HMA surrounding $22.60.
In a case where the Silver bears keep the reins past $22.60, the odds of witnessing a slump towards the monthly low of near $22.10 and then to the $22.00 round figure can’t be ruled out.
Silver Price: Hourly chart
Trend: Limited 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.
