Silver Price Analysis: XAG/USD bounces off 21-day EMA to regain $21.00
- Silver price snaps three-day downtrend inside short-term triangle.
- Bearish MACD signals keep sellers hopeful unless crossing $21.55 hurdle.
- Convergence of five-week-old ascending trend line, 50% Fibonacci retracement level appears the key support.
Silver price (XAG/USD) renews its intraday high around $21.15 as buyers cheer the latest bounce off the 21-day Exponential Moving Average (EMA) during early Tuesday.
In doing so, the bright metal prints the first daily gains in four while staying inside a three-week-old symmetrical triangle formation, currently between $21.55 and $20.70.
That said, the bearish MACD signals keep the XAG/USD sellers hopeful but a downside break of the stated triangle’s support line near $20.70 becomes necessary to reject the latest recovery hopes.
Even so, a joins of the ascending trend line from October 20 and the 50% Fibonacci retracement level of the metal’s September-November upside, near $19.90, could challenge the Silver bears afterward.
In a case where Silver prices remain weak past $19.90, the odds of witnessing a slump toward the monthly low surrounding $18.85 can’t be ruled out.
On the flip side, recovery moves need validation from the stated triangle’s upper line, close to $21.55.
Following that, the previous weekly high of around $21.70 and the monthly top of $22.25 will gain the Silver buyer’s attention before June’s peak of $22.51.
Overall, the Silver price may witness further upside but the room towards the north appears limited.
Silver price: Daily chart
Trend: Limited 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.
