Silver Price Analysis: XAG/USD retreats towards $25.00 on overbought RSI signals

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  Silver pares the biggest daily gains in a year, stays near six-month high flashed the last week.

  61.8% Fibonacci retracement, July 2021 peak adds to the upside filters.

  Silver (XAG/USD) buyers take a breather around $25.30, down 0.70% intraday during Wednesdays Asian session.

  In doing so, the quote takes a U-turn from a weekly high to consolidate the biggest daily jump in 12 months, marked the previous day. Overbought RSI conditions add strength to the pullback moves.

  However, the resistance-turned-support line from July 2021, near $24.25, followed by the 200-DMA level near $24.10, limits the short-term downside of the silver prices.

  Its worth noting that a monthly support line near $24.50 acts as extra support to challenge XAG/USD bears.

  Alternatively, the previous weeks high around $25.65, also the highest since August 2021, challenge the silver buyers during the fresh upside.

  In a case where XAG/USD bulls cross $25.65, the 61.8% Fibonacci retracement of May-September 2021 downside and July 2021 high, respectively around $26.00 and $26.80, will act as strong resistances.

  Silver: Daily chart

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