Silver Price Analysis: XAG/USD fades bounce off golden Fibonacci ratio above $23.00
- Silver price struggles to extend two-week uptrend, seesaws around intraday low of late.
- Failure to cross previous support line joins RSI retreat to lure XAG/USD sellers.
- 61.8% Fibonacci retracement, 50-SMA restrict short-term downside of the Silver price.
- XAG/USD bulls need to refresh monthly high to keep the driver’s seat.
Silver price (XAG/USD) prints 0.35% intraday losses around $23.25 as bulls run out of steam during early Wednesday, after posting positive closings in the last two consecutive weeks.
The bright metal’s latest retreat could be linked to the failure of crossing the previous support line from March 16, now immediate resistance near $23.45. Also challenging the Silver buyers is the latest U-turn in the RSI (14), as well as the lower high formation of the oscillator’s line.
As a result, the XAG/USD sellers may again try to break the 61.8% Fibonacci retracement level of the metal’s February-March fall, also known as the golden Fibonacci ratio, around $22.80.
It’s worth noting that the 50-SMA, around $22.75 by the press time, also acts as a short-term downside filter.
Should the XAG/USD breaks the stated SMA support, the odds of witnessing a slump towards the 200-SMA support near $21.60 can’t be ruled out.
However, the 50% Fibonacci retracement, close to $22.30, may act as an intermediate halt during the fall.
On the flip side, a clear break of the stated support-turned-resistance, near $23.45, isn’t an open welcome to the Silver buyers as the previous tops surrounding $23.55 could check the upside momentum.
Following that, a run-up towards the $24.00 and then to February’s high near $24.65 can’t be ruled out.
Silver price: Four-hour chart
Trend: Pullback expected