Silver Price Analysis: XAG/USD fades upside momentum below $24.00
- Silver price struggles to extend the previous day’s run-up.
- Convergence of 50-HMA, two-day-old support line restricts immediate downside.
- Sluggish oscillators and failure to cross weekly resistance lure XAG/USD bears.
Silver price (XAG/USD) stays defensive around $23.80, after rising the most in a week, as buyers fail to defend the first daily gains in a week below the short-term key resistance line.
In addition to the failure to cross the downward-sloping resistance line from January 03, sluggish MACD signals and steady RSI (14) also back the latest pullback in the bright metal price.
However, the 50-Hour Moving Average (HMA) joins an upward-sloping support line from Wednesday to highlight the $23.70 as the short-term key support that can restrict the metal’s further declines.
Following that, the monthly low of around $23.10 and the $23.00 round figure could probe the Silver sellers.
It’s worth noting that the XAG/USD weakness past $23.00 won’t hesitate to challenge the mid-December low of $22.55 before highlighting the last defense of the buyers, namely the November 2022 peak of $22.25.
On the contrary, a one-week-old descending trend line, around $23.90 by the press time, precedes the $24.00 round figure to restrict short-term XAG/USD upside.
In a case where the Silver price remains firmer beyond $24.00, the monthly high and tops marked during January 2022, respectively near $24.55 and $24.70, will be crucial to watch as they hold the key to the metal’s rally towards April 2022 high near $26.25.
Silver: Hourly chart
Trend: Pullback expected