• Silver reverses the previous day’s pullback from monthly top, grinds higher of late.
  • Bullish RSI divergence and sustained trading beyond three-week-old support favor bulls.
  • Bears need validation from $21.20 to retake control.

Silver (XAG/USD) prices remain firmer around $22.30 while reversing the previous day’s pullback from a monthly high heading into Monday’s European session.

In doing so, the bright metal again approaches the 200-SMA hurdle that triggered the quote’s U-turn on Friday.

It’s worth noting that the higher low on prices joins the recovery in RSI to hint at the bullish divergence in prices, suggesting the quote’s ability to cross the immediate key SMA hurdle surrounding $22.35.

However, the previous day’s peak surrounding $22.50 appears a validation point for the commodity’s further upside. Following that, a run-up towards May’s peak of $23.30 can’t be ruled out.

Alternatively, pullback remains elusive until XAG/USD prices remain above the three-week-old support line, around $21.70 by the press time.

Even if the bullion prices drop below $21.70, the 23.6% Fibonacci retracement of late April to early May, near $21.20 could act as the last defense of silver buyers.

Silver: Four-hour chart

Trend: Further upside expected

Additional important levels

Overview
Today last price 22.27
Today Daily Change 0.35
Today Daily Change % 1.60%
Today daily open 21.92
 
Trends
Daily SMA20 21.72
Daily SMA50 23.26
Daily SMA100 23.72
Daily SMA200 23.51
 
Levels
Previous Daily High 22.48
Previous Daily Low 21.85
Previous Weekly High 22.48
Previous Weekly Low 21.44
Previous Monthly High 23.28
Previous Monthly Low 20.46
Daily Fibonacci 38.2% 22.09
Daily Fibonacci 61.8% 22.24
Daily Pivot Point S1 21.69
Daily Pivot Point S2 21.45
Daily Pivot Point S3 21.05
Daily Pivot Point R1 22.32
Daily Pivot Point R2 22.72
Daily Pivot Point R3 22.96

 

 

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