Silver Price Analysis: XAG/USD challenges bearish channel around $22.50
- Silver eases from short-term channel’s resistance line, snaps two-day uptrend.
- Bullish MACD signals, sustained bounce off 78.6% Fibonacci retracement keep buyers hopeful.
Silver (XAG/USD) grinds higher around $22.50, down 0.14% intraday, amid early Monday.
In doing so, the bright metal fades Friday’s bounce off 78.6% Fibonacci retracement (Fibo.) level of September-November upside while easing from a resistance line of the two-week-old descending trend channel.
Given the bullish MACD and the quote’s repeated bounces off the key stated key Fibo. level surrounding $22.25-20, silver prices are likely to recover.
However, a clear upside break of the immediate hurdle surrounding $22.65 becomes necessary for the bulls to retake controls.
Even so, early November’s low near the $23.00 threshold and 200-SMA level of $24.00 will be tough nuts to crack for the XAG/USD bulls.
On the contrary, pullback moves will retest the stated Fibonacci retracement level of $22.25-20, a break of which will direct silver prices to the $22.000 and then to the channel’s support line near $21.80.
Should the commodity prices remain bearish past $21.80, the yearly low marked in September around $21.40 will be in focus.
Silver: Four-hour chart
Trend: Corrective 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.
