Silver Price Analysis: XAG/USD retreats towards $25.00 on overbought RSI signals
- Silver pares the biggest daily gains in a year, stays near six-month high flashed the last week.
- Overbought RSI hints at a pullback towards the previous resistance line but buyers remain hopeful beyond 200-DMA.
- 61.8% Fibonacci retracement, July 2021 peak adds to the upside filters.
Silver (XAG/USD) buyers take a breather around $25.30, down 0.70% intraday during Wednesday’s Asian session.
In doing so, the quote takes a U-turn from a weekly high to consolidate the biggest daily jump in 12 months, marked the previous day. Overbought RSI conditions add strength to the pullback moves.
However, the resistance-turned-support line from July 2021, near $24.25, followed by the 200-DMA level near $24.10, limits the short-term downside of the silver prices.
It’s worth noting that a monthly support line near $24.50 acts as extra support to challenge XAG/USD bears.
Alternatively, the previous week’s high around $25.65, also the highest since August 2021, challenge the silver buyers during the fresh upside.
In a case where XAG/USD bulls cross $25.65, the 61.8% Fibonacci retracement of May-September 2021 downside and July 2021 high, respectively around $26.00 and $26.80, will act as strong resistances.
Silver: Daily chart
Trend: Pullback 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.
