Silver Price Analysis: XAG/USD’s rebound stalls at critical resistance near $26.50

Silver’s comeback from weekly lows loses steam.
Is it a dead cat bounce amid dollar retreat?
$26.50 barrier is a tough nut to crack for the XAG bulls.

Dhwani Mehta FXStreet

Silver (XAU/USD) witnessed good two-way businesses so far this Wednesday, as volatility continues to play out amid fast-moving markets and dollar dynamics.

The white metal, initially, extended Tuesday’s tumble from near 7.5-year highs above $29 and dropped as low as $23.43 before staging a V-shaped reversal towards late Asia.

However, the rebound faltered, as the bears continue to guard the $26.50 level, which is the powerful confluence of the horizontal 200-hourly Simple Moving Average (HMA) and Fibonacci 50% Retracement (Fib) level of the recent correction.

Acceptance above that level, the buyers will aim for the next barrier aligned around $27.25, where the 61.8% Fib level of the same fall coincides with the bearish 50-HMA.

The hourly Relative Strength Index (RSI) has turned flat but remains below the midline, in the bearish territory, suggesting that the bears could likely extend control in the coming hours.

To the downside, the 21-HMA at $25.35 appears to offer immediate cushion after the price tested the 23.6% Fib support at $24.86 in the last hour.

XAG/USD: Hourly chart

XAG/USD: Additional levels

XAG/USD

Overview
Today last price	25.52
Today Daily Change	0.75
Today Daily Change %	3.02
Today daily open	24.82

Trends
Daily SMA20	23.86
Daily SMA50	20.31
Daily SMA100	17.97
Daily SMA200	17.56

Levels
Previous Daily High	29.27
Previous Daily Low	24.39
Previous Weekly High	29.86
Previous Weekly Low	24.03
Previous Monthly High	26.21
Previous Monthly Low	17.76
Daily Fibonacci 38.2%	26.26
Daily Fibonacci 61.8%	27.41
Daily Pivot Point S1	23.05
Daily Pivot Point S2	21.28
Daily Pivot Point S3	18.17
Daily Pivot Point R1	27.93
Daily Pivot Point R2	31.04
Daily Pivot Point R3	32.81

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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