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
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
