Silver Price Analysis: 50-DMA defends XAG/USD bulls above $19.00

Silver price (XAG/USD) remains firmer around $19.30 while paring the post-Fed losses during early Thursday in Europe. In doing so, the bright metal rebounds from the 50-DMA to stay inside a three-week-old rising wedge bearish chart pattern.

  • Silver remains mildly bid inside three-week-old rising wedge bearish chart pattern.
  • Steady RSI suggests continued grinding between 50-DMA and 100-DMA.
  • Two-month-old ascending trend line adds to the downside filters.

Given the sluggish RSI, the commodity prices are likely to remain sidelined between the 50-DMA and the 100-DMA, currently around $19.10 and $19.50 in that order.

However, the bearish formation teases sellers in case of the $19.10 break. That said, the 61.8% Fibonacci retracement of September-October upside, near $18.95, acts as the additional downside filter before directing the bullion bears towards the theoretical target surrounding $17.30.

During the anticipated fall, an upward-sloping support line from early September and the yearly low, close to $18.50 and $17.55 respectively, could act as intermediate halts for the XAG/USD (Silver) prices.

On the contrary, an upside break of the 100-DMA hurdle surrounding $19.50 could propel prices toward the recent high of $20.08 before the stated wedge’s upper line, close to $20.15, could challenge the silver buyers.

In a case where XAG/USD remains firmer past $20.15, the odds of witnessing a run-up targeting the previous monthly peak of $21.25 can’t be ruled out.

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