Silver Price Analysis: XAG/USD approaches multi-month tops near $26.20

• Silver makes a comeback from the lows of $25.55 earlier in the week.
• XAG/USD trades below the 100-day SMA indicating a bearish outlook.
• Oversold momentum oscillators warn against aggressive directional bids.

After a steep fall from the high of $28.02 since June 14, silver prices (XAG/USD) consolidated near the $25.70 level. 

At the time of writing, XAG/USD is trading at $26.07, up 0.52% for the day.

XAG/USD daily chart

On the daily chart, the white metal has been in a consistent upward trend from the low of $23.77. The break of the ascending trendline from the mentioned level mark a heavy correction in prices on profit taking.

The formation of Doji candlesticks signals sellers losing their stream near $ 25.70. Now, if price makes a sustained move above the session’s high then it could target April 26 high at $26.22.

The Moving Average Convergence Divergence ( MACD) indicator holds onto the oversold zone with stretched selling conditions. Any uptick in the MACD would allow bulls to take over the 100-day SMA at $26.50.

That said, a daily close above the 100-day SMA could mean the continuation of the earlier upside movement with the high of June 17 at $27.24 as the next target for XAG/USD bulls.

Alternatively, if price moves lower, then the immediate support emerges at the previous day’s low at $25.81

Market participants are then encouraged to retest June 21 low at $25.55 followed by the $25.00 horizontal support level.

XAG/USD additional levels