Silver Price Analysis: XAG/USD bulls need validation from $24.20 to keep the reins
- Silver price struggles to extend three-day uptrend near one-week high.
- Fortnight-old descending trend line challenges XAG/USD upside.
- 200-SMA puts a floor under the Silver price, bullish MACD signals favor metal buyers.
Silver price (XAG/USD) retreated from a one-week high as bulls seek fresh clues to defend the Federal Reserve (Fed) inspired rally. Even so, the bright metal prints mild gains around $24.10 during early Thursday in Asia.
It’s worth noting that the quote’s successful run-up beyond the 200-SMA joins the bullish MACD signals to keep the XAG/USD buyers hopeful.
However, the RSI (14) is approaching the overbought territory at a faster pace and suggests the pullback from a two-week-old resistance line, close to $24.20 at the latest.
Should the Silver price rises past $24.20, the odds of its rally toward the previous monthly high near $24.55 can’t be ruled out.
In a case where the XAG/USD remains firmer past $24.55, the January 2022 high of $24.70 may act as an intermediate halt during the north-run targeting an April 2022 peak of $26.22.
On the flip side, pullback moves may initially test the 23.6% Fibonacci retracement level of the pair’s moves between early December 2022 and January 03, 2023, close to $23.95.
Following that, the 200-SMA level of $23.75 will be important to watch as a clear break of the same could drag XAG/USD towards the 61.8% Fibonacci retracement level, also known as Golden Ratio, near $23.00.
Overall, the Silver price remains on the bull’s radar but further upside appears difficult.
Silver price: Four-hour chart
Trend: Pullback expected