Silver Price Analysis: XAG/USD retreats below $24.00 but bulls not out of the woods
- Silver eases after refreshing a six-week high, consolidates the heaviest daily jump in a week.
- Sustained break of the key trend line resistances, now supports, join firmer RSI line to direct bulls toward 100-DMA.
- Two-month-old horizontal support adds to the downside filters.
Silver (XAG/USD) steps back from the highest levels since early September, easing to $23.65 during the initial Asian session on Wednesday. Even so, the bright metal keeps the latest upside breaks of the previous key resistance lines.
Also favoring the silver buyers is the firmer RSI line, not overbought, as well as a successful run-up beyond horizontal support established since August 20.
That being said, the XAG/USD bulls are well-directed towards the 100-DMA, around $24.70 by the press time.
However, September’s high around $24.85-90 and 50% Fibonacci retracement of the May-September downside of the metal, close to $25.10, will challenge the quote’s further upside.
Alternatively, a downward sloping trend line from early July, near $23.40, acts as immediate support for the commodity before highlighting the resistance-turned-support line from June 10, close to $23.05.
Even if the XAG/USD sellers manage to conquer the $23.05 support, the $23.00 threshold and aforementioned horizontal line near $22.88 will be important to watch.
Silver: Daily chart
Trend: Further upside expected