Silver Price Forecast: XAUUSD remains bearish near $25.00
In the early hours of Thursday's Asian session, silver price (XAG/USD) lost ground after the most recent corrective rally and dropped to $24.90. In doing so, the bright metal continues to trade below the 200-Hour Moving Average (HMA) and inside a trend channel with a downward slope that has been in place for eight days.
The XAG/USD is favored not only by the bearish chart pattern and the continued trading below the 200-HMA but also by the bearish MACD signals and the absence of the oversold RSI (14) indicator. It's important to keep in mind, though, that the RSI line's below-50 level points to a difficult path down the south.
However, it looks that the immediate support for the Silver price to test is at $24.50, which is the 61.8% Fibonacci retracement level of the XAG/USD's rise between April 03 and 14.
To the commodities sellers, the $25.00 round figure and the bottom line of the aforementioned channel, which is close to $24.40, appear to be an impenetrable nut to crack; nevertheless, once cracked, the quote might be refreshed to the monthly low, which is now around $23.55. On the other hand, a crossover of the 200-HMA and 38.2% Fibonacci retracement line safeguards near-term gains in the price of silver.
The top line of the indicated bearish channel, which is now approaching $25.25, will thereafter be the subject of attention.
It should be noted that the XAG/USD run-up over $25.25 is not an open invitation to the Silver bulls since the $25.70 barrier, which includes the levels established in mid-April, has the potential to spur the upward momentum.