The price of silver, symbol XAGUSD, remains cautious after declining from its five-week high. According to the perspective of Nehcap, a pullback is anticipated.

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• Silver Price stays defensive after reversing from the highest level in five weeks.

The pair currently trades last at 24.618.

The previous day high was 24.8 while the previous day low was 24.18. The daily 38.2% Fib levels comes at 24.56, expected to provide support. Similarly, the daily 61.8% fib level is at 24.41, expected to provide support.

Silver Price (XAG/USD) remains pressured around $24.60 during the early hours of Thursday’s Asian session, after reversing from a five-week high to print the biggest daily loss of the week.

In doing so, the XAG/USD justifies the overbought RSI and failure to cross a downward-sloping resistance line from May.

It’s worth noting, however, that the bullish MACD signals and the resistance-turned-support stretched from July 20, close to $24.50, puts a short-term floor under the Silver Price.

Hence, the XAG/USD weakness appears elusive unless it stays beyond $24.50, a break of which could quickly fetch the bright metal to the 100-DMA support of around $23.95.

However, a convergence of the 21-DMA and the 200-DMA, close to $23.40 at the latest, appears a tough nut to crack for the Silver bears afterward.

On the flip side, a daily closing beyond the multi-month-old resistance line surrounding $24.80 becomes necessary to reject the bearish bias about the XAG/USD. Even so, the bulls need validation from the previous monthly high of around $25.30 to retake control.

That said, the $25.00 and $26.00 round figures, as well as May’s peak of around $26.20, as extra upside hurdles for the Silver buyers to watch.

Apart from the technical details, the Fed’s preferred inflation gauge, namely the US Core Personal Consumption Expenditure (PCE) Price Index for August, will also be important to observe for clear direction, especially amid the latest dovish bias about the Fed.

Trend: Pullback expected

Technical Levels: Supports and Resistances

XAGUSD currently trading at 24.62 at the time of writing. Pair opened at 24.72 and is trading with a change of -0.40% % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 23.31, 50 SMA 23.56, 100 SMA @ 23.97 and 200 SMA @ 23.39.

The previous day high was 24.8 while the previous day low was 24.18. The daily 38.2% Fib levels comes at 24.56, expected to provide support. Similarly, the daily 61.8% fib level is at 24.41, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 24.33, 23.94, 23.71
• Pivot resistance is noted at 24.95, 25.18, 25.57

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