Silver Price Analysis: XAG/USD bounces off 200-bar SMA towards regaining $27.00
- Silver prices attempt recovery from $26.69 following pullback from $27.49.
- 200-bar SMA offers intermediate halt inside one-month-old symmetrical triangle.
- Normal RSI conditions suggest extension of sideways moves.
Silver picks up bids near $26.91 during the pre-Tokyo open Asian trading on Friday. The white metal recently gained after taking a U-turn from 200-bar SMA, the second bounce so far in the week, amid normal RSI conditions. Even so, the bullion’s moves are likely to be curbed by a bit broader symmetrical triangle formation.
Hence, the latest pullback can attack the weekly top surrounding $27.50 before targeting $28.00.
Though, the triangle’s resistance line at $28.51 will challenge the bulls, a break of which will quickly direct the quote towards the monthly top of $28.90 ahead of challenging the multi-month high, marked in August, around $29.85.
Meanwhile, a downside break of 200-bar SMA, at $26.68 now, will fetch the commodity prices to the aforementioned triangle’s support, currently around $26.10.
In a case where the bears sneak in below $26.10, the $26.00 round-figures and 61.8% Fibonacci retracement level of July 23 to August 06 upside near $25.15 will flash on the chart.
Silver four-hour chart
Trend: Sideways