Silver Price Analysis: XAG/USD sellers look for entry below $26.70/65
- Silver trades in a choppy range between $26.97 and $26.68.
- A confluence of 21-day EMA, an ascending trend line from August 12 restricts immediate downside amid bearish MACD.
- Bulls need to refresh the monthly top to retake controls.
Silver struggles for a clear direction while taking rounds to $26.85 during Tuesday’s Asian session. The white metal marked a bearish spinning top candlestick the previous day, suggesting sellers’ exhaustion, while it's sustained trading beyond 21-day EMA and one-month-old support line favor odds of its recovery. However, bulls struggle to retake controls.
As a result, traders will wait for a clear break of either the $26.70/65 support confluence or the monthly high of $28.90 before taking any major position. Though, $27.60 and $28.50 may entertain the short-term buyers.
During the quote’s sustained run-up beyond $28.90, the multi-month high flashed in August around $29.80 and $30.00 will be the key.
Meanwhile, a downside break of $26.65 may take a break near 50% Fibonacci retracement of July 28 to early August run-up, at $26.03.
It should be noted that 61.8% Fibonacci retracement and an upward sloping trend line from July 28 will question the bullion’s downside past-$26.03 around $25.30/20.
Silver daily chart
Trend: Sideways
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.
