Silver Price Analysis: XAG/USD steps back from six-week-old resistance line to break $25.00
- Silver prints mild losses while staying below short-term resistance line, 200-bar SMA.
- Easing RSI from the overbought conditions, weak MACD favor sellers.
- Last Monday’s top can lure short-term bears, bulls need an upside break of early-September low for fresh entry.
Silver prices remain on the back foot, currently down 0.30% at $24.95, during Tuesday’s Asian session. The white metal recently took a U-turn from 200-bar SMA while slipping back below a descending trend line from September 01. The recent weakness in the commodity also follows the RSI’s pullback moves from the overbought region, as well as MACD histogram’s abating upside signals.
As a result, sellers are looking towards October 01 high near $24.50 as immediate support, a break of which will challenge an ascending trend line from September 24, at 23.45 now.
In a case where the bears keep the reins past-$23.45, the monthly bottom near $22.85 and the previous month’s low surrounding $21.65 will gain the market’s attention.
On the flip side, the immediate resistance line and 200-bar SMA, respectively around $25.20 and $25.55, can challenge short-term buyers.
Also likely to probe silver’s immediate upside attempts will be the September 08 low near $25.85.
Silver four-hour chart
Trend: Further weakness 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.
