Silver Price Analysis: XAG/USD bulls eye monthly hurdle above $22.00 on crossing 21-DMA
- Silver remains on the front foot around 12-day high, up for the third consecutive day.
- Clear break of 21-DMA, bullish MACD signals direct buyers towards one-month-old resistance line.
- Bears need a downside break of $21.00 to retake control.
Silver (XAG/USD) pierces the 21-DMA while extending the previous day’s run-up to a fortnight high during Wednesday’s Asian session. That said, the bright metal rises to $22.15 at the latest.
Not only a break of the short-term key moving average but bullish MACD signals also underpin the upside bias for the commodity prices.
That said, a descending trend line from April 29, around $22.40, appears immediate key resistance for the quote to cross.
Following that, a run-up towards the $23.00 threshold and late April swing high close to $23.60 can’t be ruled out.
However, an area comprising the 50-DMA and the 100-DMA around $23.70-80, appears a tough nut to crack for the XAG/USD bulls afterward.
On the contrary, pullback moves may have to defy the DMA breakout, around $22.00 by the press time, to direct silver prices towards a two-week-long horizontal rea near $21.20-10.
In a case where the metal remains weak past $21.10, also conquers the $21.00 threshold, it can plummet to the $20.00 psychological magnet.
Silver: Daily 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.
