Silver Price Analysis: Weekly support line probes XAG/USD bears above $23.00
|- Silver pares intraday gains after reversing from seven-month high.
- 50-HMA breakdown keeps sellers hopeful but sluggish MACD immediate support line restricts downside moves.
- 200-HMA, nearly descending trend line act as additional trading filters.
Silver price (XAG/USD) retreats to $22.35 heading into Tuesday’s European session. Even so, the bright metal remains mildly bid while consolidating the biggest daily loss in 10 weeks, marked the previous day.
It should be noted that the bullish MACD signals challenge the quote’s downside momentum.
That said, the bullion’s latest losses could be linked to the failure to cross a one-week-old horizontal resistance area surrounding $22.40-45.
However, an upward-sloping trend line from November 29, near $22.25, restricts the immediate downside of the XAG/USD price.
Should the metal breaks immediate support, the 200-HMA level surrounding $21.90, could act as the last defense of the Silver bulls.
On the contrary, an upside break of $22.45 isn’t an open welcome to the XAG/USD buyers as a downward-sloping trend line from Monday restricts immediate upside near $22.55. Also acting as an upside hurdle is the 50-HMA level near $22.75.
To sum up, the Silver price remains sidelined between the 50-HMA and the 200-HMA but the odds favoring upside are higher.
Silver price: Hourly chart
Trend: Limited upside expected
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