Silver Price Analysis: XAG/USD buyers have a bumpy road below $23.15 hurdle
- Silver fails to extend short-term resistance break, steps back from 50-SMA.
- Upbeat Momentum line suggests further recovery but three-week-old falling trend line, double tops challenge bulls.
Silver eases to $22.60 amid Tuesday’s Asian session, following the first positive daily closing.
The bright metal pierced a descending resistance line from September 16 the previous day but failed to cross 50-SMA before the latest pullback. However, the Momentum line favors the metal’s rebound from the yearly low marked during the last week.
Hence, buyers will wait for a clear upside break of 50-SMA, around $22.65, to take fresh entries targeting the $23.00 threshold.
Even so, a three-week-old downward sloping trend line and double tops marked since September 17, respectively around $23.05 and $23.15, will be the key challenges for XAG/USD traders to overcome before retaking the controls.
On the contrary, $22.30 may offer immediate support to the silver prices ahead of directing bears to the yearly low surrounding $22.00.
Following that, lows marked during November and September 2020, near $21.90 and $21.65 in that order, will be important to watch as they hold the gate for the metal’s south-run towards the sub-$20.00 area.
Silver: Four-hour chart
Trend: Pullback 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.
