Silver Price Analysis: XAG/USD looks to recapture $23.00 on 10-DMA breakout
- Silver Price remains on the front foot for third consecutive day after bouncing off Golden Fibonacci ratio.
- Upbeat oscillators, 10-DMA breakout favor XAG/USD buyers to approach $23.30 resistance confluence.
- Sellers need validation from $22.00 to retake control.
Silver Price (XAG/USD) prints mild gains around $22.80 as it prints a three-day winning steak amid early Monday in Asia. In doing so, the bright metal not only justifies Friday’s daily closing beyond the 10-DMA but also extends the previous week’s rebound from the 61.8% Fibonacci retracement of the March–May upside, also known as the “Golden Fibonacci Ratio”.
Adding credence to the bullish bias is the RSI (14) line’s gradual recovery from the oversold territory, as well as the easing bearish bias of the MACD signals.
As a result, the Silver Price is likely to regain the $23.00 mark.
However, a convergence of the 200-DMA and previous support line from early March, close to $23.30 by the press time, appears a tough nut to crack for the XAG/USD bulls before retaking control.
On the contrary, a daily closing beneath the stated “Golden Fibonacci Ratio” of around $22.25 isn’t an invitation to the Silver sellers as the lows marked in late March and June around $22.10, quickly followed by the $22.00 round figure will restrict the metal’s further downside.
In a case where the XAG/USD drops below $22.00, it becomes vulnerable to plunge toward an early March swing low of around $21.30.
Silver Price: Daily chart
Trend: Limited recovery 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.
