Silver Price Analysis: XAG/USD retreats from immediate resistance line towards $24.00
- Silver price begins trading week on a back foot, reverses the previous day’s run-up at weekly top.
- RSI’s retreat from above 50.0 levels suggests further pullback in XAG/USD price.
- 100-SMA, fortnight-long horizontal support zone restrict short-term declines of the Silver price.
- Silver bears remain hopeful unless witnessing sustained break of 50% Fibonacci retracement.
Silver Price (XAG/USD) consolidates the previous day’s gains, the biggest in over a week, while easing within a two-week-old descending triangle formation during early Monday. In doing so, the bright metal drops to $24.05 by reversing from the triangle’s top line.
In addition to the pullback from the aforementioned triangle’s upper line, the RSI’s retreat from the above-50.0 region also favors the XAG/USD price pullback.
However, the 100-SMA and the stated triangle’s bottom line, respectively near $23.70 and $23.20, limit the short-term downside of the Silver price. Also challenging the XAG/USD bears are the bullish MACD signals.
Should the Silver Price remains bearish past $23.20, the $23.00 threshold may act as an extra filter towards the south before directing the bears to the previous monthly low of around $22.70.
Alternatively, XAG/USD recovery needs validation from the triangle’s breakout towards the north. In that case, the previously stated resistance line, around $24.20, will be in the spotlight.
Even so, a sustained break of the 50% Fibonacci retracement of the metal’s May 05-25 downturn, near $24.45, quickly followed by the $24.50 round figure, will be necessary to convince the Silver buyers.
Overall, Silver price consolidates recent gains amid a sluggish Asian session on the Juneteenth holiday in the US.
Silver price: Four-hour chart
Trend: Limited downside expected