Silver Price Analysis: XAG/USD pullback looks set to retest resistance-turned-support near $24.80
- Silver Price retreats from 10-week high amid overbought RSI (14), bearish MACD signals.
- Previous resistance line from mid-May, key SMAs challenge XAG/USD sellers.
- Sluggish session allows Silver Price to consolidate weekly/monthly gains but XAG/USD bears are off the table.
Silver Price (XAG/USD) clings to mild losses at the highest levels in 2.5 months, down 0.10% intraday near $25.05 heading into Wednesday’s European session. In doing so, the XAG/USD justifies the overbought RSI (14) line, as well as the bearish MACD signals to pare the bright metal’s week and monthly gains amid a sluggish trading day, so far.
With the downbeat oscillators suggesting further declines in the Silver Price, an ascending resistance line from May 15, now immediate support around $24.80, gains major attention from the XAG/USD sellers.
Following that, a quick decline toward the convergence of the 50% Fibonacci retracement of the May-June downside and the 50-SMA, near $24.10 at the latest, will be crucial to challenge the Silver bears.
In a case where the XAG/USD bears dominate past $24.10, also break the $24.00 round figure, the Silver bears can aim for the 200-SMA level of around $23.50.
On the contrary, the 78.6% Fibonacci retracement level of $25.30 and the $26.00 round figure can lure the Silver buyers during the quote’s run-up past the latest peak of around $25.15.
It’s worth noting that the yearly high marked in May around $26.15 could join the aforementioned price-negative oscillators to challenge the Silver buyers past the $26.00 hurdle.
Silver Price: Four-hour chart
Trend: Limited downside expected