Silver Price Analysis: XAG/USD bounces off 10-DMA to snap two-day losing streak below $24.00
- Silver picks up bids to print the first daily gains in three.
- Three-week-old bullish channel, ascending trend line from late October keep buyers hopeful.
- MACD signals challenge upside bias but bears should remain cautious beyond $21.25.
Silver price (XAG/USD) welcomes buyers after bears failed to hold the castle following a two-day reign. That said, the bright metal picks up bids to refresh intraday high near $23.70 during early Friday.
In doing so, the XAG/USD recovers from the 10-DMA support of $23.55 to print the first daily gains in three while staying inside an upward-sloping trend channel established in late November.
Not only the aforementioned bullish channel, currently between $23.20 and $25.00, but a two-month-old ascending support line, close to $22.60, also challenges the Silver bears from taking control.
Even if the commodity price drops below $22.60 support, the tops marked during November and October around $22.25 and $21.25, could challenge the downside momentum. Following that, a slump toward the $20.00 threshold can’t be ruled out.
On the contrary, Silver price recovery initially aims for the $24.00 round figure ahead of challenging the monthly high surrounding $24.30.
In a case where the XAG/USD remains firmer past $24.30, the aforementioned bullish channel’s top line near $25.00 could act as the last defense of sellers.
Should the quote fail to reverse from $25.00, a run-up toward April’s high near $26.25 appears more likely.
Silver price: Daily chart
Trend: Further recovery 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.
