Silver Price Analysis: XAG/USD bulls appear hopeful to tackle 200-SMA hurdle

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.

Anil Panchal FXStreet

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

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.

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