Silver Price Analysis: XAG/USD stays on the way to $28.00
- Silver extends rebound from 100-SMA, monthly support line.
- Multiple levels between $27.90 and $28.00 test bulls amid upbeat MACD.
- Early month tops add to the downside filters.
Silver prices hold onto Friday’s recovery moves, followed by Monday’s run-up, during early Tuesday morning in Asia. In doing so, the white metal keeps its bounce off 100-SMA and an ascending support line from late April as bulls catch a breather around $27.75.
Sustained run-up above the key support indicators, 100-SMA and stated trend line, keep silver buyers hopeful as MACD teases the bulls.
It should, however, be noted that a two-week-old horizontal area around $27.90–$28.00 guards the commodity’s immediate upside moves ahead of the monthly top surrounding $28.75.
Meanwhile, pullback moves need to keep the metal lower below the 100-SMA level of $27.34 to aim for the early May highs near $27.00 and the mid-month bottoms close to $26.70.
Although the white metal is likely to rebound from $26.70, failures to do so will make it vulnerable to plunge towards the monthly low near $25.80.
Silver four-hour chart
Trend: Bullish
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.
