Silver Price Analysis: XAG/USD pullback remains elusive beyond $25.20 resistance-turned-support
- Silver price pares the biggest daily gains in three weeks.
- Upbeat oscillators, sustained trading beyond previous key resistance line favor XAG/USD bulls.
- Convergence of 21-SMA, 50-SMA acts as extra downside filter, bulls have a bumpy road towards the north.
Silver price (XAG/USD) prints mild losses around $25.30 as bulls take a breather after posting the biggest daily gains since early April. With this, the bright metal retreats to the previous resistance line during the early hours of Wednesday.
Given the bullion’s successful break of a downward-sloping resistance line from April 17, now immediate support near $25.20, coupled with the bullish MACD signals and upbeat RSI (14), the buyers are likely to keep the reins.
Even if the XAG/USD price drops below $25.20 resistance-turned-support, a convergence of the 21-SMA and 50-SMA, near the $25.00 round figure, appears a tough nut to crack for the Silver bears.
Following that, the metal’s quick fall towards the previous weekly low of around $24.50 and the 200-SMA level surrounding $24.30 can’t be ruled out.
However, the Silver buyers may remain hopeful unless the quote stays firmer past the 61.8% Fibonacci retracement level of March-April upside, near $24.05, quickly followed by the $24.00 round figure support.
Alternatively, XAG/USD recovery appears bumpy as the latest swing high of $25.50 precedes the April 17 peak surrounding $25.60 and the previous daily top near $25.90 could challenge the Silver buyers.
It’s worth noting that the Year-To-Date (YTD) high of $26.10 marked in April acts as the last defense of the Silver sellers.
Silver price: Four-hour chart
Trend: Further upside expected