Silver Price Analysis: XAG/USD bulls battle 11-week-old hurdle around $24.00
- Silver seesaws around the highest levels in three weeks, keeps Friday’s breakout of 20-DMA.
- Gradually firming Momentum line, upbeat fundamentals keep buyers hopeful.
- July’s low adds to the upside filters, immediate rising trend line challenges pullback moves.
Silver (XAG/USD) remains mildly bid around $24.00 during Monday’s Asian session.
In doing so, the bright metal buyers attack a downward sloping trend line from June 11 while keeping Friday’s upside break of 20-DMA, the first since mid-July.
Given the US dollar weakness and the slowly rising Momentum line, silver prices may overcome the immediate hurdle near $24.10. However, the last month’s low near $24.50 will challenge the commodity’s short-term upside afterward.
It should be noted that the quote’s run-up beyond $24.50 will aim for a 200-DMA level of $25.86 while the $25.00 round figure and June’s low near $25.50 may act as buffers during the rise.
Alternatively, a daily closing below the 20-DMA level of $23.82 should pull the XAG/USD back to a three-week-old rising support line, near $23.50.
In a case where silver sellers keep reins past $23.50, the yearly low near $22.15 should return to the chart. During the fall, the August 20 swing low near $22.90 may offer an intermediate halt.
Silver: Daily chart
Trend: Further upside expected
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August 29, 2021 at 04:11PM