XAG/USD recovery remains elusive below $25.60

  • Silver renews its intraday high to consolidate Friday’s losses.
  • 10-DMA, February’s previous support limits immediate upside.
  • 50% Fibonacci Retracement, 50-DMA limits short-term declines in stable RSI.

Silver (XAG/USD) regains $25.00 while posting an intraday rise of 0.50% in Monday’s Asian session.

In doing so, the shiny metal pares the biggest weekly decline since January by extending last week’s bounce off the 50% Fibonacci retracement (Fibo.) of the February-March rise around $24.45, in a steady RSI.

However, the 10-DMA and the February 10 support-turned-resistance line near $25.45 and $25.60 respectively will challenge the short-term XAG/USD bulls.

If prices break above $25.60, silver bulls will initially target $26.10 before challenging the monthly high surrounding the $27.00 threshold.

Alternatively, pullback moves can revert to 50% Fibo. level near $24.45 before targeting the 50-DMA, around $24.00 at press time.

It should be noted, however, that the weakness in the quote above $24.00 will be tested by the $23.90-$85 zone comprising the 61.8% Fibonacci retracement and the higher end of February low.

Overall, silver prices are likely to extend the latest rally, but bulls will remain cautious below $25.60.

Silver: daily chart

Trend: expected decline