XAG / USD eases from support turned resistance at $ 23.50

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  • Silver consolidates the strongest daily gains in three months.
  • MACD teases bulls but a clear break from previous support line, 20-DMA becomes necessary for further upward move.
  • The recent swing lows limit the short-term downward movement ahead of the monthly low.

Silver (XAG / USD) is taking offers of around $ 23.55 during Tuesday’s Asian session, down 0.26% in one day.

The bright metal rose the most since mid-May the previous day and offered a daily close above 10-DMA for the first time since early August.

While the earlier attempt tempted silver buyers to regain control, a downward sloping trendline from Jan.

In addition to the previous support line, the 20-DMA level near $ 24.20 and the July low near $ 24.50 are also challenging the commodity bulls.

It’s worth noting that a descending resistance line from June 11th strengthens the $ 24.50 hurdle.

Meanwhile, a break of 10-DMA down around $ 23.50 will pull the price back towards the $ 23.00 horizontal support, which encompasses two week lows.

However, any further weakness above $ 23.00 could leave the silver price vulnerable to retest the monthly low, also the lowest since November 2020, at $ 22.15.

Silver: daily chart

Trend: withdrawal expected

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