Silver Price Analysis: XAG/USD approaches $22.10-15 resistance area
- Silver extend recovery from two-year low towards three-week-old horizontal hurdle.
- 21-DMA adds strength to the upside filter, 10-DMA restricts pullback moves.
- RSI rebound, a clear break of descending trend line from April underpin bullish bias.
Silver (XAG/USD) picks up bids to $21.85 as buyers reverse the week-start pullback, justifying the previous week’s breakout of crucial hurdles. Also keeping the metal buyers hopeful is the gradual recovery in the RSI as prices rebound during Monday’s Asian session.
It’s worth noting, however, that a confluence of the 21-DMA and horizontal area comprising multiple highs marked since early May, around $22.10-15, appears a tough nut to crack for the bulls.
In a case where XAG/USD rises past $22.15, the odds favoring further upside towards the monthly high of $23.28 can’t be ruled out. During the rise, the $23.00 threshold can act as a buffer.
Should silver buyers manage to cross the monthly peak, the early April swing low near $24.15 will be on their radars.
On the contrary, pullback moves remain elusive beyond the 10-DMA level of $21.54.
Even if the quote drops below the 10-DMA, the $21.00 round figure and the $20.00 psychological magnet will be crucial challenges for the XAG/USD bears before prospering further.
Silver: Daily chart
Trend: Further upside expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
