Silver Price Analysis: XAG/USD looks set to reclaim $26.00 despite overbought RSI
- Silver price remains firmer around the highest levels in a year, seesaws of late.
- Clear upside break of previous key resistance lines, bullish MACD signals favor buyers to aim for April 2022 high.
- Overbought RSI can test the XAG/USD bulls around $26.00 round figure.
Silver price (XAG/USD) clings to mild gains around $25.50-55 during early Thursday as bulls take a breather after refreshing the highest levels in a year the previous day. Also challenging the immediate XAG/USD upside is the overbought RSI (14) line.
However, a clear upside break of the one-week-old descending resistance line, now immediate support near $25.45, joins sustained trading beyond a one-month-old ascending trend line, close to $25.15, to keep the Silver buyers hopeful.
It’s worth noting that the precious metal’s successful U-turn from the previous resistance line from late March, around $25.10 by the press time, also challenges the Silver sellers.
In a case where the Silver price remains downbeat past $25.10, the $25.00 round figure and the 100-SMA support of $23.35 will act as the last defense of the XAG/USD bulls.
On the flip side, the $26.00 round figure may join the overbought RSI (14) to challenge the Silver buyers, a break of which could propel the XAG/USD price towards the April 2022 high of near $26.25.
Following the previous yearly high of around $26.95 and the $27.00 threshold will be in focus.
Overall, the Silver price remains on the bull’s radar despite the latest inaction around the multi-day top.
Silver price: Four-hour chart
Trend: Further upside expected