Silver Price Analysis: XAG/USD bulls seem tiring above $27.00

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  • Silver holds lower ground after reversing from 10-week high.
  • Monday’s ‘Shooting star’ near short-term channel resistance suggests further pullback moves.
  • Bullish MACD probe sellers, confluence of 21-day SMA, channel support be the key.

Silver prices remain pressured around $27.30 amid the initial Asian trading session on Tuesday. The white metal rose to the highest since late February the previous day before snapping a two-day winning streak, which in turn portrayed a ‘shooting star’ bearish candlestick formation on the daily (1D) chart.

Given the formation of the key candlestick near the resistance line of a six-week-old rising channel, silver may witness further downside towards the $27.00 threshold.

However, bullish MACD and convergence of 21-day SMA, as well as support line of the stated channel, near $26.35-30, could test the bears afterward.

Meanwhile, the channel’s upper line near $27.80 and Monday’s top of $27.88 may guard the commodity’s short-term upside, a clear trading beyond the same will defy the bearish candlestick formation.

However, silver bulls will wait for a sustained run-up above the late February top near $28.35 before challenging the $30.00 threshold during any further rise past $27.88.

Silver daily chart

Trend: Pullback expected

 

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