Silver Price Analysis: XAG/USD bulls take a breather at seven-month high, $22.00 is the key
|- Silver price remains on pressured around intraday low after reversing from multi-day high.
- Overbought RSI triggered pullback but bears need validation from three-week-old horizontal support.
- XAG/USD bulls will wait for clear break of two-month-old resistance line for re-entry.
Silver price (XAG/USD) snaps a three-day uptrend as it retreats from the highest levels since early May, marked the previous day, to $22.60 on Friday.
Although the cautious mood ahead of the US employment report for November could be held responsible for the metal’s pullback, overbought RSI also teased intraday bears of the commodity. Furthermore, the failures to provide a sustained break of an upward-sloping resistance line from October add strength to the corrective moves.
However, a horizontal area comprising multiple levels marked since November 11, around the $22.00 threshold, restricts the short-term downside of the Silver price.
Following that, a monthly support line near $21.25 appears the last defense of the XAG/USD buyers.
In a case where the Silver price remains bearish past $21.25, the $21.00 and the late November lows near $20.60 should quickly return to the chart.
Meanwhile, sustained trading beyond the two-month-old ascending resistance line, close to $22.75 by the press time, appears necessary to convince the Silver buyers.
Even so, the $23.00 round figure and May’s high near $23.30 could act as extra filters to the north before giving control to the XAG/USD bulls.
Silver price: Four-hour chart
Trend: Limited downside expected
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