Silver Price Analysis: XAG/USD struggles to defy ‘double top’ bearish pattern above $25.00
- Silver wavers around monthly top, fails to extend bounce off $24.65-70 horizontal area.
- Sluggish MACD keeps sellers hopeful but confirmation of bearish formation becomes necessary.
Silver hangs around $25.40 amid Thursday’s Asian session. In doing so, the white metal nears the monthly high following its U-turn from an eight-day-old horizontal area, which in turn portrays a “double top” bearish formation.
Given the downbeat MACD conditions, coupled with the commodity’s inability to keep bounce off $24.65-70 support-zone, silver prices are likely to witness a pullback towards the lower-end of the immediate trading range between $25.30 and $25.55.
However, any further weakness below $25.30, may take a rest around the $25.00 threshold before highlighting the $24.65 key support, a break of which will confirm the bearish chart play and drag the quote towards the March-end lows near $23.75.
Meanwhile, an upside clearance of $25.55 will defy the chart formation and can aim for March 18 top near $26.65.
During the run-up, the $26.00 round-figure may offer an intermediate halt whereas the previous month’s high near $27.10 can lure the bullion buyers afterward.
Silver hourly chart
Trend: Pullback 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.
