The RSI condition indicates buyer’s exhaustion. A three-week-old horizontalline adds to the upside filters.
Silver (XAG/USD), which consolidates gains of around $23.20, is down 0.26% intraday during Thursday’s Asian session.
The bright metal takes a step back from the two-week high it reached the previous day by proving the strength of the one-month-old horizontal resistance zone around $23.25.
The RSI conditions, which don’t support the recent highs, are also challenging the XAG/USD bulls.
Silver sellers must wait for a clear downturn at the $23.00 level of the 200-SMA to allow for new entries.
Following this, the 61.8% Fibonacci Retracement (Fibo. The December-January upside, at close to $22.65, could test the XAG/USD bears prior to directing them towards the five-week-old support zone near $22.00.
While recovery moves beyond the immediate hurdle of $23.25 isn’t a greencard to silver buyers, a horizontal line starting January 18 at $23.65, which will challenge the upside moves towards the $24.00 threshold, will be.
If XAG/USD is stable beyond $24.00, it can be expected that it will continue its climb towards January’s peak of $24.70.
