Silver Price Analysis: XAG/USD renews 13-month high near $26.00 despite overbought RSI
- Silver price seesaws after refreshing multi-day high, prods three-day uptrend.
- Overbought RSI, failure to cross descending resistance line from April 2022 lure XAG/USD bears.
- 21-day EMA, four-month-old horizontal support can restrict immediate downside.
- Silver buyers need validation from $26.25 to aim for 2022 peak.
Silver price (XAG/USD) prints mild gains around $26.00 as bulls take a breather at the highest levels since April 2022 during early Friday.
In doing so, the XAG/USD price takes a U-turn from a downward-sloping resistance line from April 2022 amid the overbought RSI (14) line.
As a result, the bright metal is likely to witness further pullback in the prices, which in turn highlights the late April swing high of around $25.50.
However, the 21-day Exponential Moving Average (EMA) and a horizontal area comprising multiple levels marked since January, respectively near $25.05 and $24.60-50, can challenge the Silver bears past $25.50.
It’s worth noting that the XAG/USD’s weakness past $24.50 makes it vulnerable to dropping toward the 61.8% Fibonacci retracement level of the March-September 2022 downturn, near $23.35.
On the contrary, the Silver price may regain upside momentum by providing a daily close beyond the previously stated 13-month-old resistance line, close to $26.15 by the press time. Even so, the April 2022 peak of around $26.25 can prod the XAG/USD bulls before giving them control.
In that case, the last year’s high of around $26.95 and the $27.00 round figure could gain the Silver buyer’s attention.
Silver Price: Daily chart
Trend: Pullback expected