Silver Price Analysis: XAG/USD stays mildly bid around $18.50 inside weekly bullish channel
- Silver price portrays a three-day uptrend inside a bullish chart formation.
- Sustained trading beyond 200-HMA, firmer oscillators keep buyers hopeful.
- Sellers need a clear downside break of $18.00 to retake control.
Silver price (XAG/USD) remains firmer around an eight-day top, recently picking up bids to $18.60 during Friday’s Asian session. In doing so, the bright metal extends the run-up beyond the 200-HMA while staying inside an upward-sloping trend channel established since August 31.
The metal’s sustained trading beyond the key HMA, as well as trading inside the bullish channel, also justifies the firmer RSI (14), not overbought, to favor the buyers. Also suggesting the quote’s further upside is the impending bull cross on the MACD.
That said, the stated channel’s upper line near $18.70 appears to challenge the intraday buyers of the XAG/USD.
Following that, the 61.8% Fibonacci retracement level of August 26 to September 01 moves, near $18.75, will precede the $19.00 threshold to limit the metal’s upside moves before directing it to the August 26 swing high near $19.45.
Alternatively, a downside break of the 200-HMA, near $18.20 by the press time, could quickly drag the quote towards the aforementioned channel’s support line, at the $18.00 round figure. Also increasing the strength of the $18.00 support is the 23.6% Fibonacci retracement level.
Should the quote drops below $18.00, the yearly low of $17.56, marked earlier in the month, will be crucial to watch.
Silver: Hourly 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.
