Silver Price Analysis: XAG/USD pullback from $25.60 on the cards

• Silver pares the biggest daily gains in a month at weekly top.
• RSI conditions, six-week-old ascending resistance line challenge further upside.
• Bears remain cautious until witnessing a clear break of 200-SMA, 61.8% FE could lure buyers past $25.60.

Silver (XAG/USD) bulls take a breather around $25.30 during Thursday’s Asian session, following a notable run-up to refresh the week’s top.

Although the metal’s sustained trading above the key SMAs and bullish MACD signals favor XAG/USD buyers, an upward sloping trend line from January 20, around $25.60, has been successful in turning down the bulls of late.

Also, favoring the odds of a profit-booking wave is the RSI line that inches closer to overbought territory.

In a case where the silver prices rise past $25.60, the 61.8% Fibonacci Expansion (FE) of February month moves, around $26.00, will be crucial to watch as it holds the key to further rally targeting July 2021 peak of $26.77.

Alternatively, the recent swing low near $24.90 and January’s high of $24.70 could entertain intraday sellers of XAG/USD.

Following that, the 50-SMA and an upward sloping trend line from February 03, respectively around $24.45 and $24.25, will tease silver bears.

It should be noted, however, that a clear downside break of the $24.25 will need validation from the 200-SMA level of $23.60, to portray a short-term bearish trend.

Silver: Four-hour chart

Trend: Pullback expected