Silver Price Analysis: XAG/USD crosses monthly resistance to approach $20.00
- Silver price extends bounce off 50-DMA to renew intraday high.
- Bulls jostle with 100-DMA, descending trend line from early October.
- Firmer oscillators favor bulls but daily closing beyond $19.55 appears necessary to test previous monthly peak.
- Two-month-old ascending support line acts as additional downside filter.
Silver price (XAG/USD) takes the bids to refresh intraday high near $19.60 heading into Tuesday’s European session.
In doing so, the bright metal not only justifies the previous day’s rebound from the 50-DMA but also crosses the 100-DMA and a one-month-long resistance line to please XAG/USD buyers hopeful.
That said, firmer RSI (14) and bullish MACD signals also strengthen the odds favoring the commodity’s further upside.
However, a daily closing beyond the 100-DMA hurdle surrounding $19.55 becomes a pre-requisite for the XAG/USD bulls to take control.
Also likely to challenge the silver buyers is the previous weekly top near $19.80, a break of which won’t hesitate to challenge the October month’s peak of $21.24. During the run-up, the $20.00 psychological magnet may act as an extra resistance to watch for the bulls.
On the contrary, a daily closing below the aforementioned resistance line, close to $19.40 by the press time, could reverse the short-term bullish bias.
Even so, the XAG/USD sellers will wait for a clear downside break of the 50-DMA, close to $19.10, to take entries. Following that, an upward-sloping support line from early September, around $18.45 at the latest, appears the last defense of the silver bulls.
Silver: Daily chart
Trend: Bullish
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.
