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.
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
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.
