- Silver retreats from multi-day high, keeps bullish chart formation.
- Bearish MACD signals, failures to cross channel’s resistance favor pullback moves.
- 200-SMA becomes the key hurdle for sellers, bulls need fresh monthly high to tighten grips.
Silver (XAG/USD) keeps the previous day’s pullback from a three-month peak, around $25.10 during early Tuesday. In doing so, the bright metal steps back from the upper line of an ascending trend channel from late September amid bearish MACD signals.
The commodity’s latest consolidation eyes a two-week-old support line, near $24.80, at the momentum. However, the XAG/USD bears remain cautious until the quote stays inside the bullish chart pattern, staying above $23.70. Adding to the downside filters is the 200-SMA level near $23.65.
Should the bullion prices remain weak past $23.65, the monthly low of $23.02 will be on silver sellers’ radar.
On the flip side, the stated channel’s upper line around $25.50 can probe the silver bulls ahead of directing them to the August month’s high near $26.00.
Overall, XAG/USD bulls seem to have tired of late but the upside momentum isn’t eroded yet.
Silver: Four-hour chart
Trend: Pullback expected