Silver Price Analysis: XAG/USD grinds higher on the way to $24.00
- Silver retreats after refreshing 13-day high, keeps bounce off 100-DMA.
- Bullish MACD signals also underpin run-up towards 200-DMA.
- Seven-month-old resistance line acts as the key hurdle.
Silver (XAG/USD) pares intraday gains around $23.65, up 0.10% on a day during the mid-Asian session on Monday.
The bright metal refreshed multi-day low during the early Asian session before easing from $23.78.
The pullback moves, however, remain above the 100-DMA amid bullish MACD signals, which in turn keeps the buyers hopeful until the quote drops below the stated SMA support, around $23.20 by the press time.
Also acting as downside filters are 23.6% Fibonacci retracement (Fibo.) of July-September declines and a five-week-long horizontal support zone, respectively around $22.70 and $22.00.
Alternatively, XAG/USD upside eyes $24.00 threshold as the immediate resistance ahead of confronting the 50% Fibo. near $24.10.
It should be noted, though, that the quote’s upside past $24.10 will be challenged by the 200-DMA and a descending trend line from July, near $24.35 and $24.45 in that order.
Overall, silver prices are likely to advance further but the upside is seen as limited.
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.
