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

  • 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


Articles You May Like

Gold gains Rs 30; silver climbs Rs 856
Next week’s economic events and releases highlighted by US jobs on Friday
Some tentative signs of slowing inflation in Europe
Krona should begin to slowly appreciate over the coming quarters – Commerzbank
The Billion Dollar Trading Strategy