Silver Price Analysis: XAG/USD stays defensive $24.00 support confluence
- Silver Price (XAG/USD) remains defensive as it rebounds from a multi-day-old support confluence around $24.00.
- In doing so, XAG/USD prints a convergence of the 200-EMA and 38.2% Fibonacci retracement of late June-July upside.
- Three-week-old previous support line, now resistance around $24.50, restricts immediate upside of the Silver Price.
- 200-EMA, 38.2% Fibonacci retracement guards immediate downside of Silver price, XAG/USD remains troubled unless breaking $23.20 support.
Silver Price (XAG/USD) pares weekly losses while grinding higher past the $24.00 support confluence, mildly bid near $24.35 amid the early hours of Monday’s Asian session.
In doing so the bright metal extends the previous day’s corrective bounce off the convergence of a 200-Exponential Moving Average (EMA) and the 38.2% Fibonacci retracement of the XAG/USD’s late June-July upside after falling in the last two consecutive weeks.
It’s worth noting that a gradually rising RSI (14) line joins the looming bull cross on the MACD to underpin the XAG/USD rebound.
However, the previous support line stretched from early July, close to $24.85 at the latest, restricts the immediate upside of the Silver Price.
Following that, a seven-day-long descending resistance line near $25.10 can prod the Silver buyers before directing them to refresh the monthly high, currently around $25.30.
Meanwhile, XAG/USD pullback needs validation from the $24.00 support confluence comprising the 200-EMA and 38.2% Fibonacci retracement to aim for the 50% and 61.8% key Fibonacci retracement supports, around $23.70 and $23.30 in that order.
However, an upward-sloping support line from late June, close to $23.20 by the press time, will restrict the further downside of the Silver price.
Silver Price: Four-hour chart
Trend: Limited recovery 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.
