Silver Price Analysis: XAG/USD renews eight-month high above $24.00

• Silver price picks up bids to refresh multi-day high.
• Overbought RSI can challenge XAG/USD bulls, $24.75 in focus.
• Convergence of 21-DMA, bullish channel’s lower line highlights $22.70 as the key support.

Silver price (XAG/USD) portrays an uptick to refresh the eight-month high at $24.30 during Wednesday’s Asian session.

The bright metal rose the most since November 04 the previous day, which in turn propelled the RSI (14) towards the overbought territory. As a result, the quote’s further upside appears doubtful.

This suggests hardships for the XAG/USD bulls as they approach the upper line of the seven-week-old rising trend channel, close to $24.75 by the press time.

Even if the Silver buyers manage to cross the $24.75 hurdle, the 78.6% Fibonacci retracement level of the metal’s March-September downside, near $24.90, as well as the $25.00 round figure, will challenge the commodity’s further advances.

It’s worth noting, however, that the XAG/USD upside past $25.00 enables buyers to aim for April’s peak of $26.22.

Alternatively, pullback moves may aim for the $24.00 round figure ahead of directing the Silver sellers toward the 61.8% Fibonacci retracement, also known as the golden ratio near $23.40.

Even so, the XAG/USD bulls could remain hopeful unless witnessing a daily closing below the $22.70 support confluence, encompassing the 21-DMA and lower line of the aforementioned bullish channel.

Silver: Daily chart

Trend: Limited upside expected