Silver Price Forecast: XAG/USD bounces off weekly support line, eyes to regain $26.00
- Silver bears take a breather following the biggest daily fall in six weeks.
- MACD turns bearish but key SMAs, trend lines defend buyers.
- Tops marked during July 2021 act as short-term key resistance.
Silver (XAG/USD) holds onto the U-turn from a one-week-old ascending support line around $25.80 amid the initial Asian session on Thursday.
The bright metal dropped the most since late January the previous day before taking a U-turn from $25.40, staying comfortably above weekly support.
It should be noted, however, that the rebound needs validation from the $26.00 threshold to reject the bearish signals from MACD.
Following that, July 2021 peak around $26.75-80 will be in focus as a clear break of which will propel XAG/USD prices towards a fresh high of 2022, currently around $27.00.
On the contrary, the nearby support line and the 50-SMA, respectively around $25.60 and $25.35 limit the quote’s immediate downside.
Following that, an upward sloping trend line from February 03, close to $24.85 and January’s peak of $24.70 will be crucial to watch.
In a case where silver bears conquer $24.70 support, a convergence of the 200-SMA and 61.8% Fibonacci retracement of February-March upside, near $23.85-90, could lure them.
Silver: Four-hour 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.
