Silver Price Analysis: XAG/USD stays defensive above $23.40 support confluence
- Silver Price struggles for clear directions after snapping two-day downtrend the previous day.
- Sustained trading beyond a convergence of 200-HMA, one-week-old rising trend line keeps XAG/USD buyers hopeful.
- Steady RSI (14) adds strength to expectations of further grinding towards the north.
- Double tops around $24.00 appear tough nuts to crack for the Silver buyers.
Silver Price (XAG/USD) picks up bids to defend the previous day’s corrective bounce off the short-term key support, mildly bid near $23.60 during early Wednesday in Asia.
In doing so, the bright metal rebounds from a convergence of the 200-Hour Moving Average (HMA) and an upward-sloping support line from May 30, close to $23.60-65.
Apart from the clear bounce off important support, the steady RSI (14) line also keeps the XAG/USD buyers hopeful.
However, a three-week-old double top formation of around $24.00 challenges the Silver buyers before giving them control.
In a case where the XAG/USD remains firmer past $24.00, the 61.8% Fibonacci retracement of the metal’s May 10-26 May, around $24.70, will act as the last defense of the Silver buyers.
Following that, the $26.00 round figure and the previous monthly high of around $26.15 will be in the spotlight.
On the contrary, a clear downside break of $23.40 won’t hesitate to portray an immediate fall toward the $23.00 round figure, a break of which could direct the XAG/USD sellers toward the previous monthly low of near $22.70.
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.
