Silver Price Analysis: XAG/USD bulls attack 50-DMA on the way to $25.00

  • Silver stays on the front foot after the strongest daily upside in four months.
  • Firmer RSI, sustained break of three-month-old trend line favor buyers.
  • July low adds to the downside filters, key SMA confluence offers a tough nut to crack to the bulls.

Silver (XAG/USD) stays on the front foot, up 0.30% intraday around $24.80 during early Monday.

The bright metal posted the heaviest daily gains since early May on Friday, crossing a downward sloping trend line from June 11.

Given the firmer RSI line, not overbought, backed by the key trend line breakout, silver prices are likely to remain progressive towards a convergence of the 100-DMA and 200-DMA, surrounding $25.90-95.

It should be noted, however, that the 50-DMA near $24.85 and the $25.00 threshold will act as near-term important hurdles.

Meanwhile, pullback moves need to conquer the resistance-turned-support, near $24.65, before directing XAG/USD sellers towards July lows near $24.50.

It’s worth noting that an ascending support line from August 09, near $23.80, holds the gate for the metal sellers afterward.

Silver: Daily chart

Trend: Further upside expected

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