Silver Price Analysis: XAG/USD bulls need validation from $22.70
- Silver picks up bids to print mild gains, reverses late Thursday’s pullback from two-month high.
- Sustained break of eight-month-old descending trend line, bullish MACD favor further upside.
- 200-DMA, resistance line from July tests immediate upside momentum.
- Sellers must break fortnight-old support line for fresh entry.
Silver (XAG/USD) remains firmer around an intraday high of $24.52, up 0.08% on a day heading into Friday’s European session.
The bright mental jumped to the highest since the previous day before taking a U-turn from $24.70.
In doing so, the commodity prices reversed from a downward sloping resistance line from July.
However, a clear upside break of an eight-month-old resistance line, now support near $24.20, joins bullish MACD signals to keep XAG/USD buyers hopeful.
That said, the metal’s latest upside aims for the 200-DMA level of $24.61 ahead of the stated resistance line near $24.70.
Though, a daily closing beyond the $24.70 will quickly propel the quote towards November’s peak of $25.40.
On the contrary, pullback moves remain elusive beyond the descending resistance-turned-support line from May, near $24.20.
Following that, a downward trajectory towards December’s high near $23.45 can’t be ruled out. Even so, silver sellers should remain cautious until witnessing a clear downside break of a two-week-old support line around $23.15.
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.
