Silver Price Analysis: RSI conditions direct XAG/USD bulls towards $20.00
|
- Silver price holds onto to recovery moves from weekly low amid oversold RSI.
- 100-SMA, four-day-old descending trend line challenge immediate run-up.
- $19.50 appears a tough nut to crack for XAG/USD bears.
Silver price (XAG/USD) prints a corrective pullback around $19.85, snapping a three-day downtrend. In doing so, the bright metal rebounds from a two-week low during Thursday’s Asian session.
The metal’s rebound seems to take clues from the nearly oversold RSI conditions.
That said, the XAG/USD buyers presently aim for the convergence of the 100-SMA and the weekly resistance line, around $20.00.
However, the 23.6% Fibonacci retracement of July-August upside and early August swing high, respectively near $20.25 and $20.50, could challenge the metal buyers afterward.
In a case where the XAG/USD prices remain firmer past $20.50, the odds of witnessing the fresh monthly high, currently around $20.90, can’t be ruled out.
On the contrary, multiple levels marked since early July joins the 200-SMA and 50% Fibonacci retracement level to highlight $19.50 as strong support. Following that, $18.90 and July’s low of $18.14 could lure the bullion bears.
Overall, silver prices are likely to witness a short-term upside but the bullish trend is far.
Silver: Four-hour chart
Trend: Limited upside expected
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.