Silver Price Analysis: XAG/USD bulls seek validation around $24.50

FX
  • Silver remains sidelined after two-day uptrend to seven-week high.
  • Short-term horizontal resistance, downbeat Momentum line challenge bulls.
  • Previous resistance from early October, 200-SMA guard short-term downside.

Silver (XAG/USD) bulls seem tiring around $24.55 following the two-day run-up to the multi-day high.

That said, the quote seesaws during Tuesday’s Asian session while keeping the last week’s upside break of the resistance line from October 03, now support around $24.25, as well as the 200-SMA level of $23.03.

However, descending Momentum line and failures to cross September’s peak challenge the XAG/USD buyers around $24.90.

Also acting as an upside barrier is the $25.00 round figure, a break of which will direct silver buyers towards the August month’s top near $26.00.

On the contrary, the stated resistance-turned-support and 200-SMA, respectively near $24.25 and $23.00, restrict short-term declines of the metal.

Should the quote drops below $23.00, the bearish momentum could escalate towards the monthly low of $21.99 before challenging the previous month’s trough surrounding $21.40.

Silver: Four-hour chart

Trend: Pullback expected

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