Silver Price Analysis: XAG/USD defends multi-month support near $25.80

FX
  • Silver consolidates near the $25.80 after a free fall from the $28.00 level.
  • XAG/USD is holding above 200-day SMA indicating emergence of support here.
  • Oversold momentum oscillators warn against aggressive directional bids.

Silver Price (XAG/USD) treads water in the Asian session. Prices move in a very close trading band with no meaningful traction. 

At the time of writing, XAG/USD is trading at $25.89, down 0.02% for the day.

XAG/USD daily chart

On the daily chart, the white metal has been consolidating in a broader trading range of $27.00-$28-50, before breaking the range on June 16. XAG/USD tested the levels last seen in April.

If price makes sustained moves above the intraday high at $25.96, then it could continue to move higher. The first target could be found at the previous day’s high at $26.29.

The  Moving Average Convergence Divergence ( MACD) indicator holds onto the oversold zone with stretched selling conditions. Any uptick in the MACD would allow bulls to take over the $26.60 horizontal resistance level.

That said, XAG/USD  would be motivated to test the high of June 17 in the vicinity of the  $27.25 area.

Alternatively, if price decisively breaks the 200-day Simple Moving Average (SMA) at $25.70, then it could meet its first lower target at the low of June 21 at $25.55.

A daily close below the mentioned level could prompt the bulls to march toward April 15 low at $25.32 followed by the $25.00 horizontal support level.

XAG/USD additional level

 

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